Tuesday Volume 578 1 April 2014 No. 146

HOUSE OF COMMONS OFFICIAL REPORT

PARLIAMENTARY DEBATES (HANSARD)

Tuesday 1 April 2014

£5·00 © Parliamentary Copyright House of Commons 2014 This publication may be reproduced under the terms of the Open Parliament licence, which is published at www.parliament.uk/site-information/copyright/. 703 1 APRIL 2014 704

Mr Hunt: The most damaging thing for patient care House of Commons would be a pay award, which the hon. Gentleman sounds like his is supporting, that would mean the Tuesday 1 April 2014 potential loss of 6,000 nursing jobs from our front line. That would be incredibly bad for patients and incredibly bad for nurses. All nurses are getting a minimum 1% The House met at half-past Eleven o’clock rise. That is the right thing to do. That is supported by the shadow Chancellor but not, apparently, by the PRAYERS shadow Health Secretary.

20. [903439] Nadhim Zahawi (Stratford-on-Avon) (Con): [MR SPEAKER in the Chair] In a report published by the King’s Fund last month, South Warwickshire NHS Foundation Trust was highlighted as a leading example of compassionate BUSINESS BEFORE QUESTIONS care for the frail elderly. Will the Secretary of State join me in congratulating the trust’s staff on the move away TRANSPORT FOR LONDON BILL [LORDS] from tick-box targets, and visit the trust to see this new Second Reading opposed and deferred until Tuesday emergency care model in practice? 8 April (Standing Order No. 20). Mr Hunt: I much enjoyed a recent dinner where I had the chance to meet a consultant from South Warwickshire Oral Answers to Questions NHS Foundation Trust. One of the discussions I remember having with him was how inside the NHS the definition of success for a hospital was in the past too narrowly focused on targets and financial balance, and not enough HEALTH on patient safety, compassionate care and clinical outcomes. He, and many other people in the NHS, welcome the change that this Government have made in the past The Secretary of State was asked— year to change that balance.

Compassionate Care Helen Jones (Warrington North) (Lab): Does the Secretary of State agree that compassionate care begins 1. Andrew Selous (South West Bedfordshire) (Con): with being able to see a GP? In areas such as mine, GP What steps he is taking to improve compassionate care appointments are increasingly harder to get. In fact, in the NHS. [903418] one practice has had its contract rescinded because of its failures. Does he now regret scrapping the target The Secretary of State for Health (Mr Jeremy Hunt): allowing patients to see a GP within 48 hours? The Government have made it a key priority to restore a culture of compassionate care throughout our NHS. Mr Hunt: I am interested and rather astonished that Ten thousand nurses and midwives will have taken part the hon. Lady dares to mention the words “GP” and in a new leadership programme that champions patient- “contract” in the same sentence. It was Labour’s GP focused compassionate care. Pilots are testing whether contract changes in 2004 that made it disastrously more all nurses should spend time on the wards prior to a difficult for people to see their GP and destroyed the nursing degree. link between patients and doctors by getting rid of named GPs. She will be pleased to know that from Andrew Selous: Will the Secretary of State join me in today we are reintroducing named GPs for the over-75s, congratulating NHS staff, who are shifting the priorities which is big step forward in making it easier for people of the NHS culture towards compassionate care and to see their GP. away from a tick-box culture? Does he agree with Robert Francis, who says that compassionate care very Andrew George (St Ives) (LD): Although the Secretary often saves money? of State says that he is getting rid of tick-box targets, new targets are being introduced, including hourly ward Mr Hunt: My hon. Friend is absolutely right. Last rounding for nurses and the introduction of a requirement week I was in one of the safest hospitals in the world, for nurses to undertake a year as a care assistant. Would Virginia Mason hospital in Seattle, which has cut litigation it not be better to depend on the professionalism of the claims by three quarters since it introduced safer care. nursing profession? We have fantastic hospitals in this country too, such as Salford Royal. The truth is that safer care is better value Mr Hunt: That is exactly what we are doing. There is for money: it means that more money can be spent on no target to introduce hourly rounding, but there is very the front line, not on litigation. good evidence from the hospitals that have it, such as Salford Royal, that it results in the buzzer going off less Grahame M. Morris (Easington) (Lab): The Secretary often, calmer wards and problems being nipped in the of State is not showing much compassion towards bud. People are given food and water before they feel hard-working NHS staff, who have a 1% pay rise. One the need to ask for it and we end up with much better year on from the top-down reforms, what does he think and safer care. That is something the hon. Gentleman of the survey showing that 69% of front-line staff think should welcome. We certainly want to work with the his reforms are damaging patient care? nursing profession to ensure we deliver that. 705 Oral Answers1 APRIL 2014 Oral Answers 706

NHS Reorganisation learn that it was vastly greater under the last Labour Government. We are paring that down precisely because 2. Mr David Crausby (Bolton North East) (Lab): we want money to be spent on the front line. What his most recent estimate is of the cost to the Caroline Dinenage (Gosport) (Con): Does the Secretary public purse of reorganisation in the NHS. [903419] of State share my hope that the Government’s joint commitment to increasing NHS spending and dealing The Secretary of State for Health (Mr Jeremy Hunt): with the legacy of private finance initiative debt will According to official figures, the new structure set up by help areas such as Gosport, which is living under the the Health and Social Care Act 2012 will save £5.5 billion umbrella of a huge PFI hospital that was approved in this Parliament and £1.5 billion every year after that, under the last Government and is sucking up most of all of which will be reinvested in front-line care. the NHS budget?

Mr Crausby: Given that he promised in 2010 that Mr Hunt: PFI debt is costing the NHS more than there would be no top-down reorganisation of the £1 billion every year. In some cases that money was well NHS, how can the Minister justify spending billions of spent, but it was often very poorly spent. My hon. pounds on top-down reorganisation on the day on Friend is absolutely right: we want the money to be which Simon Stevens, the new chief executive of NHS spent on front-line care, which is why we have drawn a England, has warned that the NHS is facing the biggest line under the appalling deals negotiated by the last “budget crunch in its 66-year history”? Government. We are spending money where it should be spent, in order to help patients. Mr Hunt: As Simon Stevens is starting today, I think that this is a good moment at which to welcome him to Andy Burnham (Leigh) (Lab): It is a year to the day his post. He is an outstanding individual, and I know since the Government’s reorganisation took effect, and that we all wish him well in what will be a challenging now that the dust has settled, we can see the full scale of but incredibly important job. its folly. There are 163 more NHS organisations than As for the reorganisation, the official figures make there were before, four times more managers are being clear that it is saving more than £1 billion every year paid the very highest salaries than the Government during the present Parliament—money that is being planned for, and 4,000 staff received redundancy payments reinvested in the provision of 1,600 more nurses, 1,700 only to be rehired by the new organisations that the more midwives, 1,800 more health visitors and nearly Government had created. Is not the reason why the 8,000 more doctors than we had under Labour. I am NHS is the only public service that cannot honour a afraid that that shows that Labour has not learned the 1% pay increase for its hard-working staff the fact that lessons of Mid Staffs. Labour Members still want to these Ministers lost control of their own reorganisation, turn the clock back and spend all that money on and it has now wasted billions of pounds? administration. Mr Hunt: I think that the right hon. Gentleman Mr Simon Burns (Chelmsford) (Con): Does my right needs to look at the figures. The reorganisation, which hon. Friend agree that savings that have been made he opposed through thick and thin, means that the through greater effectiveness and efficiency, and that NHS is spending less on administration and bureaucracy. can be ploughed back into patient care, should be If he questions that, may I ask how he thinks we found warmly welcomed? Does he not think that such action the money to pay for 8,000 more doctors and 15,000 is far preferable to the bizarre suggestion by a former more clinicians, if it was not by getting rid of primary Labour Health Minister that people should be charged care trusts and strategic health authorities? That is why £10 a month to visit their GPs, which would compromise there are now 2.5 million more diagnostic tests and Nye Bevan’s founding principle of a free health service? 4 million more out-patient appointments every year. We are doing more for patients than was ever done when the right hon. Gentleman was Secretary of State. Mr Hunt: I do think that that is a bizarre suggestion. Given our ageing population, we need to make it easier Andy Burnham: I know that it is April Fool’s day, and rather than harder for people to see their GPs. I also the Secretary of State certainly seems to be getting into think it bizarre of the Opposition to set their face the spirit of it with that answer, but his fantasy figures against the reforms that my right hon. Friend helped to will be laughed at by anyone who works in the NHS. pilot through the House. Because money has gone to It is not just in relation to bureaucracy that the Government the front line, 800,000 more operations are being performed have broken promises. They said that the reorganisation in the NHS year in, year out than were performed would improve patient care, but 70% of NHS staff say under Labour. We are putting money where it is needed, that it has got worse. The first full year of the reorganised with doctors and nurses. NHS has been the worst year for a decade in A and E. It is harder to get a GP appointment than it was before, David Wright (Telford) (Lab): Will the Secretary of and cancer patients are waiting longer to start treatment. State give us more details about the amount of money Is it not now clear that the Government’s reorganisation that was spent on consultants during the top-down has been a disaster on every level for patients and reorganisation? Would that money not have been better taxpayers who never voted for it, and who were promised spent on nursing? that it would never happen?

Mr Hunt: I will happily give the hon. Gentleman the Mr Hunt: I will tell the right hon. Gentleman what is figures, but if he is shocked by the amount that was not an April fool—the appalling care at Mid Staffs on spent on consultancy, he will be even more horrified to his watch. If he is talking about how the NHS is doing, 707 Oral Answers1 APRIL 2014 Oral Answers 708 perhaps, for once, Labour Members should look at to managers. That is to the disadvantage of front-line what patients are saying. I know that it is difficult, but if staff and patients. It is why we are currently in negotiations we look at what patients say, we see that since the with the unions to ensure that we improve redundancy election, there has been a 5% increase in those who terms, stop those eye-watering payments and have more think that their NHS care is safe, and a 10% increase in money to care for front-line patients. those who think that they will be treated with dignity and respect in the NHS under the coalition. We are 21. [903441] Barbara Keeley (Worsley and Eccles South) proud of that, because we are putting patients before (Lab): Talking of eye-watering payments, may I refer to politics, which the right hon. Gentleman never does. the six-figure pay-off of £300,000 reportedly paid to Jo-Anne Wass, one of the 10 highest earners in the NHS? Despite the fact that she is leaving this month, the NHS NHS Staff (Redundancy and Re-employment) is said to be paying for a two-year secondment for her, even though she will not return. How many 1% pay rises for nurses could be found out of that £300,000? 3. Mr John Spellar (Warley) (Lab): How many staff have been made redundant and subsequently re-employed Dr Poulter: These are questions that the Opposition by NHS organisations since May 2010. [903420] should have thought about—the hon. Lady was a Minister in the previous Government—when they negotiated the 10. Pat Glass (North West Durham) (Lab): How redundancy terms. They are Labour’s redundancy terms, many staff have been made redundant and subsequently which we are changing. When we look at the figures, re-employed by NHS organisations since May 2010. under the previous Government’s NHS reorganisation [903427] in 2006 to 2008, we see that the NHS spent more than £360 million on redundancy and early retirement alone, which compares with only half that—£178 million from The Parliamentary Under-Secretary of State for Health 2011 to 2013—under the current Government. How (Dr Daniel Poulter): Since May 2010 and up to December much more money would have been available for staff 2013, 4,050 staff across the whole NHS have been pay had the previous Government got that right? re-employed in the NHS following redundancy. This covers all staff grades, not just managers, and is a tiny Community Pharmacies proportion of the total NHS work force of currently around 1.2 million. 4. Ann Coffey (Stockport) (Lab): What representations he has received on community pharmacies. [903421] Mr Spellar: May I thank the Minister for that utterly complacent answer? Is it not outrageous that, while The Parliamentary Under-Secretary of State for Health front-line health service staff are having their salaries (Jane Ellison): We receive a number of representations frozen, the fat cats at the top are getting monstrous about community pharmacies over any period. Of course, pay-outs and then being re-employed straight away they play a vital role in their local area, providing elsewhere in the NHS? high-quality care and support and improving people’s health, especially in hard-to-reach communities. For example, more than 5,000 pharmacies assist with smoking Dr Poulter: The Opposition will have to do better cessation work. than these prepared questions. We have been lumbered with their redundancy terms, which were negotiated Ann Coffey: I thank the Minister for her reply. With when the right hon. Member for Leigh (Andy Burnham) GPs managing demands on their time by operating was a Minister in the Department of Health. longer waiting lists for appointments, to the increasing On NHS pay, we believe in having enough front-line frustration of my constituents, is it not time for a more staff to care for patients. That is the lesson of Mid radical change in the role of community pharmacists in Staffs. What the previous Government would have done— primary care? Does the Minister agree that any proposals and the Opposition would have us do—is give some to reorganise health services in Greater Manchester staff in the NHS two pay rises, not just one. That is should fully explore the contribution that pharmacists unacceptable. We need to have enough staff to ensure can make—for example, in supporting people with long- that we can look after patients. All staff in the NHS will term conditions or prescribing for minor conditions? receive a pay rise of at least 1%, but unfortunately, because of the terms that the previous Government set, Jane Ellison: The hon. Lady is right to say that some managers are still treated better than patients. We pharmacists have a great role to play, and she has given will change that. a good example of their helping people to manage long-term conditions and helping people with their medication. NHS England’s community pharmacy call Pat Glass: Some time ago, the Prime Minister promised to action has stimulated the debate about where community to stop the revolving door in the NHS and recover pharmacies should sit. We see them as a vital part of payments from those staff who had got huge payments front-line services, and I am glad that the NHS is and come back, sometimes to the same job. How is that looking at their role in the round, because it is a really going? How many people and how much money? important one. Dr Poulter: I think this is an own goal from the Bob Blackman (Harrow East) (Con): What Opposition. They set the redundancy terms in 2006, representations has my hon. Friend received in relation when the shadow Secretary of State was a Minister in to the sale of e-cigarettes in community pharmacies, the Department, which have allowed extraordinary, eye- given that they form part of the smoking cessation watering redundancy payments to be made, particularly process? 709 Oral Answers1 APRIL 2014 Oral Answers 710

Jane Ellison: I have received no specific representations Karen Lumley: Will my right hon. Friend congratulate on that matter, but my hon. Friend will know that we Worcestershire Acute Hospitals NHS Trust, which has have taken measures to ban the sale of e-cigarettes to used some of its winter pressure money this year to buy under-18s. He will also know that, as we transpose the beds in a nursing home in order to free up much-needed new tobacco directive into our country’s law, there will hospital beds? Does he agree that that model enables be opportunities to bear down on some of the advertising elderly people to be cared for in their community when and on the ways in which e-cigarettes are placed, about they no longer need urgent treatment? which we have some concerns. We recognise that e-cigs can be a way for some people to quite smoking, but we Mr Hunt: I am happy to congratulate the trust on its also recognise the concern that they could be a gateway excellent work. It is worth reflecting on how well the into smoking for young people. NHS did this winter. Despite constant attempts by the Opposition to talk up a crisis, we hit the target for A Keith Vaz (Leicester East) (Lab): Does the Minister and E in more weeks than was the case when the right agree that one way in which community pharmacies can hon. Member for Leigh (Andy Burnham) was in office, play a larger role in the NHS is in the provision of and 2,000 additional people were seen within four hours testing for, and raising awareness of, diabetes? Has she every single day. received any representations on that matter? Let us get diabetes testing on to the high street. Derek Twigg (Halton) (Lab): Part of the problem with people being admitted and readmitted to hospitals Jane Ellison: I think that I received a representation involves access to their GPs. What is the Secretary of from the right hon. Gentleman in person when he was State doing to ensure that elderly people across the kind enough to visit my constituency with the Silver board have access to their GP, so as to prevent their Star diabetes charity that he founded. That visit perfectly admission or readmission to hospital? demonstrated the role of testing in the community; it was fantastic to see people queuing up to be tested in a Mr Hunt: The hon. Gentleman is absolutely right. If day-to-day setting outside a supermarket. He is quite we are going to deal with the pressures in A and E, we right to say that community pharmacies have a big role need to have a massive improvement in primary care to play. I recently visited Tesco to learn about its work access. There has been historical under-investment in with Diabetes UK, and about the many tens of thousands primary care, going back over many years, and we need of people that those two organisations, working together, to change that. One of the ways in which we want to do have tested. that is to reintroduce GPs taking personal responsibility for the most vulnerable older people, and today’s changes Mr David Heath (Somerton and Frome) (LD): Does will help us to move towards that. the Minister recognise that not only pharmacists but—here I declare a professional interest—optometrists represent Lorely Burt (Solihull) (LD): In my constituency the a huge reservoir of underused professional skill and success of virtual wards has decreased the need for expertise in an unrivalled network of premises? Can we hospital beds. That is welcome, but dementia sufferers, not find ways of using that expertise more effectively in who sometimes need hospital treatment and specialist primary care, diagnostics and—as the right hon. Member care to mitigate the additional confusion and anxiety for Leicester East (Keith Vaz) suggests—screening? that they experience, do need specialist care within a hospital. Our local dementia unit is under threat of Jane Ellison: I echo my previous point that all our closure. Does the Secretary of State agree that it should front-line health care services have a role to play in the not be closed and that that is a wrong decision? community in helping people to keep well, to stay out of acute care and to manage their medicine. Indeed, the Mr Hunt: I do not know the details of that particular NHS is looking at this question more widely, and I case, but I am happy to look into it. I would say that a understand that the central message of Simon Stevens’s quarter of our hospital in-patients have dementia, and speech today is that we need to look in the round at the it is incredibly important that hospitals continue with a way in which all our front-line services work together to revolution in the way they look after people with dementia. deliver great care in the community. There are some fantastic examples of that around the country, and I want to give them every support and Out-of-hospital Care encouragement.

Mr Jamie Reed (Copeland) (Lab): GP access is a 5. Karen Lumley (Redditch) (Con): What progress he crucial element of out-of-hospital care, and the British has made on improving out-of-hospital care for frail Medical Association today said that the damage caused elderly people. [903422] by this Government to the NHS has been “profound and intense”. Last week, the Royal College of General The Secretary of State for Health (Mr Jeremy Hunt): Practitioners said that more than a quarter of us now Under the new GP contract, which starts today, we will wait more than a week for an appointment with our ensure progressively that everyone over the age of 75 has family doctor. Within days of taking office, Ministers a named GP responsible for delivering proactive care axed Labour’s guarantee of an appointment within for our most vulnerable older citizens. The new contract 48 hours and took away the funding for evening and will help to restore the personal relationship between weekend opening. Under this Government, has it not doctor and patient that was destroyed in 2004 when got harder and harder to get an appointment with a named GPs were abolished. GP? Let us have an honest, grown-up answer. 711 Oral Answers1 APRIL 2014 Oral Answers 712

Mr Hunt: The honest factual answer is that we got rid The Parliamentary Under-Secretary of State for Health of that target because when it was in place the number (Jane Ellison): Despite 1.2 million more A and E attendances of people actually being able to see their GP within 48 in England, nearly 96% of patients have been seen, hours was falling, so it was not working. I am afraid treated, transferred and discharged within four hours of that this is the same old Labour problem: thinking that arrival at A and E. That excellent level of service is a the solution to every problem in the NHS is another credit to the hard work of front-line NHS staff across target. That is exactly what led to Mid Staffs and the whole NHS, and I am sure the whole House would exactly what we will not allow to happen. want to thank them for that.

Brain Tumours (Children) Rushanara Ali: I am disappointed that the Minister has not bothered to answer the question. I will answer it 6. Mr Dominic Raab (Esher and Walton) (Con): for her: nearly 1 million patients have had to wait for What steps he is taking to reduce the time taken to longer than four hours in A and E over the past 12 months diagnose brain tumours in children. [903423] —it is one of the worst figures in a decade. Will she and her Government get a grip and sort this out? The Parliamentary Under-Secretary of State for Health (Jane Ellison): We have committed £450 million to Jane Ellison: I did answer the question—I told the enable earlier diagnosis of cancer, including direct GP hon. Lady exactly how the NHS was performing. I have access to MRI scans for suspected brain tumours. We to say that Government Members slightly despair at the have also funded a BMJ learning module for GPs on constant churlishness of Opposition Members who try diagnosing brain tumours in children. Of course, I have to talk down the NHS and talk up a crisis. They are also met my hon. Friend to discuss this issue, and I am trying to talk the situation into fitting the rhetoric, but planning to attend the all-party group on brain tumours the NHS has performed really well this winter and very shortly. many more people have been seen within the target. The average waiting time for someone to be seen is actually Mr Raab: May I thank the Minister for her answer, 30 minutes. The NHS has done well and she should join and welcome her decision to write to local health boards, us in congratulating it on that. and Public Health England’s decision to write to heads of public health, to promote the delivery of the HeadSmart campaign’s brain tumour symptom awareness cards via Sir Tony Baldry (Banbury) (Con): Does my hon. schools? That gives us a shot of cutting the diagnosis Friend agree that one of the ways to reduce pressures on delay in children to five weeks. Will she join me in A and E is to ensure that people do not go to A and E if urging councils to deliver the cards? This will not cost they do not need to? Will she compliment the Oxford the taxpayer a penny, but it will save hundreds of lives. clinical commissioning group for the work that it is doing in Abingdon and is about to do in Banbury in setting up a primary triage unit at the entrance of A and Jane Ellison: I would like to thank all the organisations E to ensure that those who need primary care get it, and behind the excellent HeadSmart campaign for their that those who do not require A and E care get the amazing work. To mark the first anniversary of the new proper and appropriate care? public health arrangements, I am planning to write to local health and wellbeing boards to make them aware of the issues of particular interest to Parliament, and Jane Ellison: I congratulate my right hon. Friend’s this is one that I intend to highlight. Public Health local CCG. Increasingly, I am seeing, right across the England has also agreed to contact all directors of country, imaginative and innovative ways in which people, public health. We fully support the HeadSmart campaign’s local clinicians, public health professionals and people aims and encourage local bodies to help drive improvements in wider health services are looking at how we keep in this crucial area of care. people who do not need to go to A and E out of A and E. Some of them are doing remarkable work. We will be Fiona Mactaggart (Slough) (Lab): My constituent celebrating that this week by recognising some of those Raj Rana, who is now four, is a survivor of a brain unsung heroes who are doing that great public health tumour. One group that really can assist in this area is work in our communities. schools. Will the Minister talk to the Department for Education about how they can become alert to early Mrs Linda Riordan (Halifax) (Lab/Co-op): Calderdale symptoms of brain tumours? Royal hospital’s A and E is well run and very busy at times. Why does the Minister think that the proposed Jane Ellison: That is one of the points people from closure of it will improve the health care of my constituents? the HeadSmart campaign raised when I met them, and of course I am happy to draw the attention of colleagues in the Department for Education to the hon. Lady’s Jane Ellison: I responded to a debate on that issue a concerns and make them aware of this exchange. few months ago. As the hon. Lady knows, there are no plans for what she suggests, but the local trust has begun a process, in which she and other local politicians A and E Waiting Times are engaged. At the heart of that process is care for local people, looking at what is clinically best for them 7. Rushanara Ali (Bethnal Green and Bow) (Lab): and what the best outcomes are for them in the long term. What estimate he has made of the number of patients That will have regard to Sir Bruce Keogh’s review of urgent who have waited for more than four hours in accident care. What we want are the best outcomes for people, and emergency departments in 2013-14 to date [903424] and I am sure that that is what she wants too. 713 Oral Answers1 APRIL 2014 Oral Answers 714

Andrew Percy (Brigg and Goole) (Con): Every weekend, Andy McDonald: If the Minister really believes in as a first responder volunteer in the NHS, I see too parity of esteem, how can he possibly justify cutting the many people taken off to hospital unnecessarily. One funding for mental health trusts by 20% more than has way of addressing that is to have a proper strategy for been the case for other hospitals? Six leading mental community paramedicine. We have had a trial running health organisations warned that that decision will put in Goole, which the Secretary of State has seen, where lives at risk. Will the Minister now rethink the matter? an emergency care practitioner delivers care in people’s homes, thereby reducing visits to hospital. Do we not Norman Lamb: It is because I really care about parity need a national strategy on community paramedicine? of esteem that I described the decision by NHS England as flawed. It cannot be justified. It is not based on Jane Ellison: I know of my hon. Friend’s extraordinary evidence. I am pleased to say that since then the former work as a first responder, and we all greatly admire it. chief executive, David Nicholson, has written to all his He makes another great point about how we tackle this area teams to make it very clear that in their commissioning long-term challenge of the sustainability of our acute plans and clinical commissioning groups, and in determining services. I am happy to draw his comments to the contracts with mental health providers, they must apply attention of NHS England. I am sure that it is one part the principle of parity of esteem. Let us wait to see what of all the things it is looking at as it addresses this issue. emerges from that, but any reduction in funding for mental health this year would be unacceptable.

Andrew Gwynne (Denton and Reddish) (Lab): The Paul Blomfield: We know that spending on mental complacency of this Minister knows no bounds. In health fell for the first time in a decade in the first year 2011, the Prime Minister said: for which this Government were in power. Unfortunately, “I refuse to go back to the days when people had to wait for the Department no longer collects or publishes that hours on end to be seen in A and E.” data, but Sheffield Mind has expressed its concerns In 2013-14, the first year after the Government’s about cuts in the two subsequent years despite referrals reorganisation, we saw the worst year in A and E for a rising dramatically. Will the Minister assure the House decade, with almost 1 million people waiting longer that he will in future publish figures on spending levels than four hours to be seen in accident and emergency. and that mental health services will not be subject to a As A and E is the barometer of the whole health and fourth year of cuts? care system, is this not the clearest sign that the NHS is getting worse on their watch? Norman Lamb: We want to make sure that there is complete transparency in the availability of data and to Jane Ellison: So desperate are the Opposition, I think ensure that in future it will be possible to draw those the shadow Minister actually used the same opening comparisons. I suspect that there is agreement across line that he used at the last Health orals. It really is time the House that mental health must not lose out. In the to change the script. The NHS has seen more people in last decade, when the NHS was financially squeezed A and E than ever before. Waiting times have halved mental health lost out, as the Health Committee confirmed. since the last Government left office. If he wants to It has happened again this time, but I am absolutely come to the Dispatch Box and highlight problems in A determined that we will change the levers to ensure that and E, why does he not try the 86.6% of people being mental health gets its fair deal. I am delighted to confirm seen in Wales, which is a truly shocking performance today that we are ending the exclusion of mental health statistic. patients from the legal right of choice. It is extraordinary to me that when the Labour Government introduced a legal right of choice in the NHS, they inexplicably left Physical and Mental Health (Parity of Esteem) out mental health patients. We are ending that today.

8. Andy McDonald (Middlesbrough) (Lab): What Mr Slaughter: Last week, I hosted a reception in progress has been made on achieving parity of esteem Parliament to celebrate the outstanding work of the between physical and mental health. [903425] West London Centre for Counselling and its tireless support for my constituents with mental health issues, 12. Paul Blomfield (Sheffield Central) (Lab): What and I thank my hon. Friends the Members for Liverpool, progress has been made on achieving parity of esteem Wavertree (Luciana Berger) and for Copeland (Mr Reed) between physical and mental health. [903429] for attending. Organisations such as the centre are, in the words of Mind, “straining at the seams” because demand so far outstrips resources. Why does not this 15. Mr Andy Slaughter (Hammersmith) (Lab): What Minister take responsibility for being in government progress has been made on achieving parity of esteem and do something about mental health being a Cinderella between physical and mental health. [903432] service?

The Minister of State, Department of Health (Norman Norman Lamb: That is precisely what I am seeking to Lamb): The mandate to NHS England requires measurable do, but we have to address what I have often described progress in achieving parity of esteem by March 2015. as an institutional bias against mental health in the “Closing the Gap”, which was published in January NHS. For example, when the previous Labour Government 2014, contains a reinvigorated system-wide drive to introduced a maximum waiting time of 18 weeks, deliver parity of esteem and to hold services to account. inexplicably, they left out mental health again. What That includes programmes in NHS England, Public possible justification can there be for that? We are Health England and Health Education England. ending that and ensuring that when commissioners 715 Oral Answers1 APRIL 2014 Oral Answers 716 determine where funding goes they will have to take on an adult ward or travel hours to the nearest bed? The into account waiting time standards in mental health Health and Social Care Act 2012 was meant to deliver for the first time. parity of esteem. The Minister is not a commentator or a bystander. I listened to his answers a moment ago. Dr Sarah Wollaston (Totnes) (Con): I am proud to be Can he explain what has gone so wrong and how he a patron of Cool Recovery, a mental health charity in intends to fix it? my constituency that provides vital support and information for sufferers and their families. Will the Minister confirm Norman Lamb: I agree that I am not a bystander. that as we welcome Simon Stevens to his new role, he That is why I have acted to introduce choice for mental will not only discuss how parity of esteem is reflected in health patients for the first time—something that the the overall funding share but make sure that some of Labour Government completely failed to do. Perhaps that funding can go to the charities that provide that the hon. Lady could explain to the House why on earth parity? they would leave out mental health patients from the legal right of choice. It is extraordinary. This Government Norman Lamb: I will absolutely discuss parity of are taking decisive action to ensure that there is real esteem with Simon Stevens when I meet him very soon parity—real equality—in the way that mental health and I will ensure that the case for third sector organisations patients are treated. is taken into account, as they play an incredibly important role. I was delighted, incidentally, to be down in the Maternity Care south-west at the signing of the crisis care concordat to ensure that people who are suffering a mental health 9. Stephen McPartland (Stevenage) (Con): What crisis are treated in the same way as people who are recent steps he has taken to improve maternity care. suffering a physical health crisis. [903426]

Paul Burstow (Sutton and Cheam) (LD): The Minister 11. Henry Smith (Crawley) (Con): What recent steps is absolutely right to talk about the institutional bias he has taken to improve maternity care. [903428] and that is why it is absolutely right to introduce choice today and to set access standards for mental health for 14. John Howell (Henley) (Con): What recent steps he the first time. Will he go one step further and do has taken to improve maternity care. [903431] something else that the previous Labour Government did not do by introducing the standards that the National The Parliamentary Under-Secretary of State for Health Institute for Health and Care Excellence sets for mental (Dr Daniel Poulter): We have made improving maternity health and ensuring that they are must-dos as well? services so that women have a named midwife responsible for ensuring personalised maternity care the key objective Norman Lamb: I very much share my right hon. in our mandate to NHS England. Since May 2010 the Friend’s frustration that when a medicine is determined number of full-time equivalent midwives increased by by NICE as an evidence-based intervention, the system more than 1,500, and over the past two years I have set has to allow it, but when NICE determines that a up a £35 million capital investment fund, which has procedure should be followed, it is discretionary. We already seen improvements to more than 100 maternity must address that to ensure that we use the money in units. the most effective, evidence-based way. Stephen McPartland: The Diamond Jubilee maternity Mary Macleod (Brentford and Isleworth) (Con): Will unit at the Lister hospital in Stevenage is doing an the Minister have a discussion with his colleagues in the amazing job for young mums, and the neonatal unit has Department for Work and Pensions and the Department just won a national award. I will be visiting the staff on for Business, Innovation and Skills to see what more Friday to thank them for their hard work. Would the can be done to help patients with mental health issues Minister like to record his support for the staff who do to get into the workplace and find employment? such a great job?

Norman Lamb: My hon. Friend raises an incredibly Dr Poulter: I would be happy to do so. I am aware of important point. One thing that I am very proud of is the positive difference that the Diamond Jubilee unit that under this Government 80,000 more people a year has made to local maternity services. My hon. Friend are getting access to psychological therapies through will be aware that the East and North Hertfordshire the improving access to psychological therapies NHS Trust and the unit have received £314,000 of this programme—something we that should be very proud Government’s capital funding to support the hard-working of. We have also done some joint work with the Department staff on that unit delivering high-quality care to women. for Work and Pensions on how we can link up IAPT much more effectively with Jobcentre Plus to get people Henry Smith: In 2001 the then Labour Government back to work, rather than paying them benefits. closed the maternity unit at Crawley hospital, despite a growing birth rate since then in my constituency. The Luciana Berger (Liverpool, Wavertree) (Lab/Co-op): local clinical commissioning group proposes to reintroduce The Minister was right to point out that from today a midwife-led maternity unit. Will my hon. Friend meet people who use mental health services are supposed to me and the CCG to discuss those plans further? be able to choose where they get their treatment. However, the payment mechanisms still are not in place and the Dr Poulter: I would be delighted to do so. As my hon. guidance has not been issued. Is it not the case that the Friend knows, I have a particular knowledge of his only choice for many teenagers is whether to be treated local hospital trust. It was a very short-sighted decision 717 Oral Answers1 APRIL 2014 Oral Answers 718 by the previous Government to downgrade and effectively 17. [903435] Mr David Nuttall (Bury North) (Con): close Crawley hospital, given the demographic pressures Following the closure of the special care baby unit at there. There is a good case for a midwifery-led maternity Fairfield general hospital in my constituency, new unit. Under this Government we are seeing the numbers mothers and families are now faced with travelling to of those increase. I would be happy to meet him to either Bolton or north Manchester. In the light of the discuss these matters further. recent report from the charity Bliss on the costs of having a premature or sick baby, will my hon. Friend John Howell: I welcome the increased number of ensure that appropriate support is in place for Bury midwives, but what are the Government doing to support families who are struggling with a baby who needs women who suffer from postnatal depression? specialist hospital care?

Dr Poulter: My hon. Friend makes an important Dr Poulter: My hon. Friend makes an important point. We were talking earlier about improving parity of point, and he has been a strong advocate for local esteem between mental and physical health. When we mothers and families in his constituency. But he will came to power, only 50% of maternity units had specialist also be aware that there was a review of maternity perinatal mental health support, and we will make sure, services in the Greater Manchester area that recognised through the mandate to Health Education England, that, by changing the way in which services were delivered, that by 2017 all maternity units have specialist perinatal there could be improvements and 25 young children’s mental health support. That is something that this and babies’ lives could be saved each year. There has Government will be very proud of. been a review, and that review is saving lives, so I commend any similar service reconfiguration that delivers Kate Green (Stretford and Urmston) (Lab): Last similar benefits to women and patients. December the UK national screening committee advised against offering all pregnant women a routine test for group B streptococcus. The Minister will recall that I Children’s Diet asked about this matter in Health questions last time. The issue is not to screen in all cases, but to ensure that 13. Nick Smith (Blaenau Gwent) (Lab): What steps the enriched culture medium test is available where the Government is taking to reduce the amount of clinicians deem it appropriate. Will the Minister look at sugar in children’s diet. [903430] how that test can be made available whenever it is clinically necessary? The Parliamentary Under-Secretary of State for Health (Jane Ellison): The Government’s focus is on reducing Dr Poulter: That is a good point. On screening, we calories overall rather than focusing solely on sugar, have to listen to the advice of the national screening and informing consumers so that they eat fewer calories, committee, as I am sure hon. Members on both sides of including sugar, is key to the responsibility deal. We the House would agree, but on the enriched culture have 36 companies cutting calories under the calorie medium test, I have had further meetings with Group B reduction pledge, which is often through the reformulation Strep Support and with the former editor of the of popular products, and our Change4life campaign obstetricians and gynaecologists journal, the BJOG.On informs families how they can improve their diet and the back of that meeting I have written to the Royal health. Some of the early evidence from Public Health College of Obstetricians and Gynaecologists to ask it to England’s January smart swaps campaign is really look at the clinical evidence on that test, and it will take encouraging. the matter forward.

Mr Barry Sheerman (Huddersfield) (Lab/Co-op): I Nick Smith: Blimey, what a cop-out! With a third of thought that answers to questions were improving after children under 18 either obese or overweight, what 12 noon, but the last answer on post-natal depression action has been agreed with the Secretary of State for was not as good as I expected. We have a campaign on Education to stop the consumption of sugary drinks in post-natal depression, which is the biggest killer of schools? healthy young women through suicide. The Minister is being complacent. Early diagnosis and good GPs are Jane Ellison: My understanding is that the consumption essential. What is he really doing about that? of sugary drinks is banned in schools. I have discussed that with the Department for Education, but I am Dr Poulter: The hon. Gentleman is absolutely right. I happy to take up the point. thought it was disgraceful, when we came to power and I must correct the hon. Gentleman on his point about inherited the legacy of the previous Government on childhood obesity. Let us give credit where it is due. post-natal depression, that only 50% of maternity units Childhood obesity levels are for the first time levelling had perinatal mental health support. That was not off and we are beginning to see some progress, although good enough, and that is why I have ensured that in the there is much further to go. We have a straightforward mandate to Health Education England, and working disagreement. The Government believe we need to give with NHS commissioners, all maternity units will have people information. The Opposition believe in a top-down, specialist perinatal support by 2017. There is more state-driven approach. training going in for the work of the Royal College of General Practitioners on mental health support for GPs Topical Questions in helping women, and we are now increasing the number of health visitors by almost 2,000, and health visitors do a fantastic job in providing perinatal mental health T1. [903408] Mr Ben Bradshaw (Exeter) (Lab): If he will support to so many women. make a statement on his departmental responsibilities. 719 Oral Answers1 APRIL 2014 Oral Answers 720

The Secretary of State for Health (Mr Jeremy Hunt): trusts sector as a whole was in deficit. We are getting a Last week, I launched a campaign to save up to 6,000 grip of those problems. We will publish the figures she lives by halving avoidable harm and avoidable death in wants, but the reason it has been particularly challenging the NHS. I am inviting all NHS trusts to sign up to this year is that hospitals have responded to the Francis safety, by putting together their own plans, with support report and hired 3,500 additional nurses to ensure that provided by NHS England, Monitor, the NHS Trust we have proper care on our wards. Development Authority and the NHS Litigation Authority. Learning from hospitals with the best safety records T5. [903412] Chris Heaton-Harris (Daventry) (Con): anywhere in the world, such as Virginia Mason in What progress is being made on ensuring that selective Seattle and Salford Royal here in England, we have a dorsal rhizotomy is available to children with cerebral once-in-a-generation opportunity to put behind us the palsy who need that life-changing operation? tragedy of Mid Staffs and make the NHS the safest health care system in the world. Norman Lamb: I remember well the meeting I had Mr Bradshaw: People in Exeter and Devon with with my hon. Friend, other hon. Members and some mental illness are now waiting more than two years for families, and indeed I remember the testimonies those treatment. This is totally unacceptable and will, if it has families gave. I will write to NHS England about his not already, lead to the loss of lives. The Minister has question and report back to him on the progress it is repeated today his criticism of NHS England’s decision making. to cut funding for mental health, but as the shadow Minister reminded him, he is not a passive observer; he T2. [903409] Grahame M. Morris (Easington) (Lab): is the Minister responsible. What will he do about it? How does the Minister respond to a warning from the UK’s top cancer doctors that the planned closure of Mr Hunt: The reason we are not passive observers is 18 specialist centres for treating the victims of brain cancer that we have made some substantial improvements in is putting patients’ lives at risk by delaying treatment? It mental health provision since coming to office, including is clearly at odds with the Prime Minister’s assurance legislating for parity of esteem, which is precisely why about improving access. Those top brain surgeons say the right hon. Gentleman feels able to ask that question. that it is appalling. Will the Secretary of State stop it There are 55,000 more people every year getting a and engage in a proper and meaningful review? dementia diagnosis and nearly 80,000 people going on to psychological therapies. Lots has been done, but Mr Jeremy Hunt: The review the hon. Gentleman there is lots more to do, and we will continue to do refers to is a consultation by NHS England to ensure everything we need to until we get that parity of esteem. that we commission specialist services better. There has been a 23% increase in the number of cancer sufferers T3. [903410] Mr David Heath (Somerton and Frome) getting treatment under this Government. We want to (LD): The whole House will have been appalled by improve on that record even more, which means having evidence from the Winterbourne View case and others sensible discussions on how to improve specialised of inappropriate methods of controlling patients. Will commissioning, and that is what is going on. the Minister now take action to ensure that restraint is only ever used as a last resort, whether in care homes, [903413] Bob Blackman (Harrow East) (Con): In hospitals or mental health units? T6. 2010 the Chancellor specifically set aside funding for the rebuilding of the Royal National Orthopaedic The Minister of State, Department of Health (Norman hospital in my constituency. The site has planning Lamb): The evidence from Winterbourne View was permission. Will my hon. Friend update the House on utterly shocking. The Mind survey subsequently revealed progress so that we see work on the ground before that restraint is used far too much across the health 2015? system. We committed to reviewing the guidance, and I am pleased to say that we will publish new guidance later this week to address the very point my hon. Friend The Parliamentary Under-Secretary of State for Health raises. (Jane Ellison): My hon. Friend will be interested to know that the NHS Trust Development Authority is Liz Kendall (Leicester West) (Lab): The Government’s reviewing the trust’s business case and is working with damaging reorganisation has weakened the grip on the trust to ensure that its plans are affordable. I know NHS finances. Figures slipped out the day after the that my right hon. Friend the Secretary of State has Budget show that NHS hospitals are in deficit for the visited the hospital and is a great champion of it. I will first time in eight years, hospital trust deficits are three ask the TDA to keep my hon. Friend fully up to speed. times higher than they were a year ago and twice as many foundation trusts are in the red. Will the Secretary T4. [903411] Lucy Powell (Manchester Central) (Lab/ of State now commit to publishing the final year-end Co-op): I have a question for the Secretary of State on figures for all hospitals in one annual account so that performance-related pay. He will know that a year ago the House can hold him to account for his mismanagement part of the Greater Manchester ambulance service was of public money? privatised to Arriva. For the first nine months of its contract, every single month it missed its targets for Mr Jeremy Hunt: It is financially challenging for the getting patients to hospital on time and for collecting NHS, but we will not lose control of NHS finances, as patients within a scheduled time frame, yet over the happened under Patricia Hewitt. I remind the hon. Lady same period it was awarded £400,000 in performance- that for nine of Labour’s 13 years in office the NHS related pay. Is that good use of public money? 721 Oral Answers1 APRIL 2014 Oral Answers 722

The Parliamentary Under-Secretary of State for Health number of English patients going to Welsh hospitals (Dr Daniel Poulter): The hon. Lady will be aware, of has increased by more than 10% since 2010? Does that course, that it was the right hon. Member for Leigh mean that the English NHS is in crisis? (Andy Burnham) who had the most to do with introducing the private sector and agreeing ambulance service contracts Mr Jeremy Hunt: Unfortunately, a third of Welsh in the Greater Manchester area. I think that Opposition patients do not get things such as urgent scans within Members need to remember their record on private six weeks, compared with just 1% of patients in England. sector involvement. If she has concerns, we will of The Welsh NHS is struggling badly. I urge Labour, if it course look into them. is to be consistent, to work closely with its colleagues in Cardiff to give a better standard of care to people in Mr Speaker: The Minister’s answers are too long. He Wales, because they deserve a good NHS as well. really has to get that into his head. I do not know how hard I have to try. I try to help the hon. Gentleman, but he is not very good at helping himself. Mr Douglas Carswell (Clacton) (Con): There is due to be a consultation on the future of maternity units at David Tredinnick (Bosworth) (Con): In his travels to Clacton and Harwich hospitals. Last week, however, the People’s Republic of China, what has my right hon. the management team at the already troubled Colchester Friend the Secretary of State learned about the integration trust decided to shut the units anyway. That has caused of western medicine with traditional Chinese medicine? great anger and concern locally. Will my hon. Friend write to the board to ensure that it does not prejudice Mr Jeremy Hunt: What I have learned is that the most the outcome of the consultation and that decisions are important thing is to follow the scientific evidence. made on the basis of fact, not muddled management? Where there is good evidence for the impact of Chinese medicine, we should look at that, but where there is not, Dr Poulter: I will certainly be happy to look into the we should not spend NHS money on it. issue. My hon. Friend will be aware that the closure decisions were made on clinical safety grounds, for T7. [903414] Mr Dave Watts (St Helens North) (Lab): the safety of women. It is a temporary issue. One of the How is the Government’s pledge to get hospitals operating outstanding problems in my hon. Friend’s part of the on a seven-day basis going? Many GP commissioners world and elsewhere when we came into government are refusing to provide the funding for hospitals to was a historical shortage of midwives. That is why we provide that service. are investing in more midwives. There are already 1,500 more in the NHS and I believe that six more will be recruited Dr Poulter: As the hon. Gentleman will be aware, we to the local NHS in his area. are in negotiations with the British Medical Association and other health care unions about the future shape of the NHS consultant contract and junior doctors contract. T9. [903416] David Wright (Telford) (Lab): Mental health We are determined to have a contract that remains fit services in Telford are under review and the Castle for purpose in future and to reform the contract that we Lodge facility has been closed for a considerable time. It inherited from the previous Government, which was has been heavily used by people in the community who not fit for purpose. We will continue to work with the do not have to be admitted into Shrewsbury. Will the BMA to make sure that we protect the interests of Minister confirm that if local people want to retain patients and deliver better care. Castle Lodge, as I believe they do, it will be retained?

Charlotte Leslie (Bristol North West) (Con): I very Norman Lamb: I understand the issue that the hon. much welcome the taskforce reviewing the effects of the Gentleman is raising. If he wants to discuss it further working time directive; as my hon. Friend knows, I have with me, I shall be happy to meet him. Clearly, local campaigned long on the issue. Given the severity of the opinion and the making of decisions locally are what evidence, which shows that more than a quarter of a our reforms are all about. million hours of surgical time are lost per month because of the directive, will my hon. Friend assure me that he will not only listen to, but act bravely and robustly on, Tim Farron (Westmorland and Lonsdale) (LD): Rural any recommendations to rid the NHS of this very surgeries such as Ambleside, Coniston and Hawkshead dangerous directive? in my constituency are under threat because of a combination of historical funding difficulties and the removal of the minimum practice income guarantee. Dr Poulter: My hon. Friend has campaigned with Will the Minister agree to look into the setting up of a great vigour on the issue, and rightly so. The European strategic small surgeries fund, so that rural surgeries working time directive, to which the previous Government have a confident future? signed up in a headlong and reckless way, has damaged continuity of patient care and the training of the consultants of tomorrow. That is why we set up the independent Dr Poulter: My hon. Friend and I have discussed the review. We look forward to its recommendations and we issue before. As he is aware, price premiums are already will make sure that we respond to those appropriately in built into the funding formula to support rural practices. due course. NHS England has already identified about 100 practices that may need additional and special support. T8. [903415] Andy McDonald (Middlesbrough) (Lab): Commissioners will be looking to provide that and The Health Secretary talks about Welsh patients work with those rural practices and others that may flocking to the English NHS, but is he aware that the have challenges. 723 Oral Answers1 APRIL 2014 Oral Answers 724

Jenny Chapman (Darlington) (Lab): Who is responsible Tom Blenkinsop (Middlesbrough South and East for the disgraceful increase in the numbers of people Cleveland) (Lab): The Francis report highlighted the across the country waiting hours in pain and indignity importance of ward sisters in properly managing wards, for an ambulance? so why has the number of band 8 nurses in the north-east fallen by 87 since the general election? Mr Jeremy Hunt: We have 1.2 million more people going to A and Es every year. The ambulance service Mr Jeremy Hunt: The number of nurses overall is up has, on the whole, been doing a good job, but there have by 1,600 since the general election. Let me be absolutely been areas where there are problems. We need to change clear that I do not believe in a system where the Secretary our attitude towards the capabilities of ambulance services, of State is micro-managing precisely how many nurses particularly the ability of paramedics to treat people on there are in every ward in every hospital in the country. the spot, and we are driving through that change. Because we have protected funding that Labour wanted to cut, there are more doctors and more nurses than Mr Stewart Jackson (Peterborough) (Con): In the there were when it was in government. absence of a definitive policy decision on the fortification of basic foodstuffs with folic acid, what steps are Ministers taking to encourage women of child-bearing age to take Mr Philip Hollobone (Kettering) (Con): Ten babies a folic acid to reduce the incidence of neural tube defects day are born at Kettering general hospital. May I such as spina bifida and hydrocephalus? welcome the recent award of £400,000 of NHS modernisation funds to the hospital’s 33-bed maternity Jane Ellison: My hon. Friend is right to highlight this unit and urge the Minister to encourage NHS England important nutritional need for women who are planning to prioritise areas of high population growth such as to get pregnant or are pregnant. He and I are meeting Kettering for future funding? soon to discuss fortification as a policy area. I urge all GPs and health services to take every opportunity to Dr Poulter: I know that the staff at my hon. Friend’s highlight to women this important nutritional requirement. maternity unit work tremendously hard to look after patients, and it is important that we gave them the right Jim Shannon (Strangford) (DUP): Last week at Queen’s facilities in order to do so. I am delighted that, like over university in Belfast, a significant breakthrough for 100 other birthing units in the country, they have received ovarian and breast cancer means that women who money to make sure that women are treated with greater might otherwise opt for an oophorectomy can still have dignity and that the quality of care is as high as it children. Does the Minister agree that money spent on can be. cancer research can increase quality of life and life expectancy? What help will Government give to cancer Bill Esterson (Sefton Central) (Lab): I cannot speak research at Queen’s university in Belfast? highly enough of the staff at Southport hospital who cared for me when I spent three days there as a patient Jane Ellison: The hon. Gentleman is right that research last month. They told me that GPs now routinely send is vital, and a great deal of it is going on in this area. I older patients straight to A and E because their funding recently met the all-party group on ovarian cancer to has been cut and that community services are no longer update it on that research, and I will be happy to update in place to support people in their own homes, which is him after questions. He has mentioned before how all leading to a crisis at A and E. Is not the sad reality research applies across our United Kingdom. As he that what is happening at Southport is being repeated knows, whatever we learn through research in England up and down the country as a result of the Government’s is always shared across the different countries. disastrous reorganisation and cuts to front-line services? Dr Julian Huppert (Cambridge) (LD): Health care in Cambridgeshire has been underfunded for years, and Mr Jeremy Hunt: I am very pleased about the excellent mental health care particularly so. This is getting worse treatment that the hon. Gentleman received. The problems as a result of the private finance initiative contracts that that the nurses talked about are exactly why, from were signed, the differential deflator for mental health today, we are reintroducing named GPs for everyone and physical health, and the simple fact that mental aged 75 or over to bring back the kind of personal care health demand is up. Will the Secretary of State meet and personal responsibility for patients that I am afraid me and the mental health trust to work out a way out of was so sadly abolished previously. these problems that will not harm patients? Several hon. Members rose— Norman Lamb: I would be very happy to meet my hon. Friend if that is acceptable to him. Mr Speaker: Order. As usual, demand exceeds supply. 725 1 APRIL 2014 Royal Mail 726

Royal Mail would be able to sell all the shares—one can usually flog off something for a knock-down price—but whether, in so doing, they secured best value for the taxpayer. 12.34 pm They have sought to hide behind the advice they Mr Chuka Umunna (Streatham) (Lab) (Urgent received from the bankers, who made millions out of Question): To ask the Secretary of State for Business, the deal. Will the Secretary of State confirm that those Innovation and Skills to make a statement on the price advisers acted within “inflexible” constraints set by at which Royal Mail was privatised last year, in the light Ministers to achieve a sale as soon as possible in this of the National Audit Office’s report, out today. Parliament? Had they waited for the markets to settle and for further years’ profits to be delivered, they could The Secretary of State for Business, Innovation and Skills have achieved a better price. Secondly, is it not the case (Vince Cable): The National Audit Office has today that having judged that Royal Mail’s profits were doomed published its report on the Royal Mail sale of shares. to decline, far from making an objective judgment, they The report confirms that we achieved our primary simply refused to entertain the notion that it could objective of securing a sale of shares, allowing Royal succeed in public hands, although the financial results Mail to access the private capital it needs to invest and for the last financial year showed a trebling of profits? thrive. As a result the taxpayer now faces reduced risk Finally, we were promised that the Secretary of State of having to provide financial support to the universal would secure a long-term and supportive shareholder postal service. base, but the opposite has turned out to be true. Will he It was right that we took a cautious and measured confirm that the 17 supposed long-term investors he approach to the sale. That approach was taken in the prioritised had sold almost half the shares allocated to light of our primary objective, and reflects the considerable them within weeks and that hedge funds now make up a risks we faced due to industrial relations and challenging large number of the shareholder list? market conditions. The Secretary of State dismissed claims that a cherished The price range for the shares was set following a national institution was being sold off on the cheap as comprehensive programme of engagement with over “froth”. The truth is that this has been a first-class 500 potential investors and was benchmarked against disaster for the taxpayer and those he once referred to valuations of comparable postal companies. I am clear as “spivs and gamblers” are laughing all the way to the that this was the correct approach to secure a successful bank. The very least he can do today is apologise. transaction. A more aggressive approach to pricing would have Vince Cable: The last thing I intend to do is apologise. introduced significantly greater risk. The advice that we What I do intend to do is refer to what the report received in this respect was unambiguous. There was no actually said, as opposed to the spinning and froth that confidence that a sufficient number of buyers would is being generated around it. Let me read again the offer a significantly higher price. A failed transaction report’s initial conclusion on value for money: and the retention of Royal Mail in public ownership would have been a very poor outcome for the taxpayer, “By floating Royal Mail on the Stock Exchange the Department as the NAO report confirms. achieved its key objectives of introducing private capital and commercial disciplines. Given Royal Mail’s prospects and prudent Achieving taxpayer value is about securing both short- initial capital structure it is now less likely that the taxpayer will term and long-term benefits. In the short term, we have have to provide public support for the universal postal service.” delivered a successful transaction, which raised £2 billion That is what it actually said. for the Exchequer, enabled over 690,000 members of the public to buy Royal Mail shares and put in place the Let me address the criticisms, if that is what they largest employee share scheme of any privatisation in were. The first was that the Department was cautious, nearly 30 years. In the long term, we have reduced the but I would have thought that caution in this context ongoing risks to the taxpayer by putting Royal Mail in a had a lot to commend it. The reason the Department position where it can operate commercially and finance was cautious was the very real risk that the floatation its own funds if needed. In doing so, as the NAO could fail. The choice we faced was: had the floatation confirms, we have achieved our key objectives. failed, it would have remained in public ownership and, despite the hon. Gentleman’s preference for keeping it The sale of shares in Royal Mail has delivered on our in public ownership, the valuation placed on it continuing commitment to protect the universal postal service and in public ownership was about £1 billion. That was not safeguard vital services for the taxpayer. disputed by the National Audit Office. The alternative—the floatation which happened—resulted in a value for the Mr Umunna: Mr Speaker, you know it is April fool’s taxpayer of £2 billion in cash and £1.5 billion in continued day when a report is published by the National Audit value of the retained sale. There was a choice between Office saying that the £3.5 billion that resulted from the privatisation and “the Department…could have achieved better value for the taxpayer” the £1 billion had it failed, so it is absolutely right and but Ministers go out to the media, and come to this House, sensible that we were cautious. to declare their privatisation a success. They must think The hon. Gentleman made the point that there was a we are all fools. What planet are they living on? lack of flexibility in the initial public offering system. There are no two ways about this: the report delivers Indeed, the National Audit Office makes that point: a damning verdict on the Government’s botched there was a lack of flexibility. The question, therefore, privatisation, which has left the taxpayer disgracefully is: were there any alternatives? Could this have been short-changed to the tune of hundreds of millions of done in a different way? The Government could have pounds. Let us be clear: the issue was not whether they eliminated the retail investors and had more flexibility 727 Royal Mail1 APRIL 2014 Royal Mail 728 over price at the time of sale, but as it happens one of Mr Speaker: Order. The Secretary of State must be the successes of the privatisation is the fact that 670,000 heard. This is very important. [Interruption.] Well, people investors now have shares. must make their own assessment on both sides of the The other way of selling Royal Mail would have been House—such is the nature of political debate—but the through a trade sale, and of course we looked at that as Secretary of State must be heard. an option. One of the reasons we did not pursue it was that we looked at the history of privatisation under the Vince Cable: Looking at the volatility of shares, this Labour Government. and there was one very good company is exposed to a considerable level of competition, example of what happens when a trade sale is pursued: as a result of actions of regulators beyond the Government’s I refer the hon. Gentleman to the NAO report on the control. The estimate has been made—I think that I privatisation of QinetiQ. What happens with the supposed cited this to the Business, Innovation and Skills Committee flexibility of a trade sale—[Interruption.] —that a 1% fall in sales is the equivalent of a 17% fall in profits for this company. We hope, and we have every Mr Speaker: Order. Mr Blenkinsop, before Christmas reason to be optimistic, that with the very good management I specifically advised you to take up yoga or some of the company, the co-operation of the work force and other similarly therapeutic and calming activity. Moreover, the investment that privatisation now makes possible we your brother very wisely purchased you a book on shall have a positive outcome in terms of competitiveness, the subject. It is evident to me that you have not yet but there is a great deal of uncertainty, which lies read it. behind the volatility of the shares. We in the Government have been criticised, not least Vince Cable: What happened in that trade sale was by the Select Committee, over the past few months that a company with an equity value at sale of £125 million because we failed to take account of the estimates made was eventually valued at £1.3 billion—10 times what the by the banks that were bidding for business. One section Labour Government sold it for. That is the alternative of the NAO report—the hon. Gentleman has clearly model with which we were confronted. not read it—completely vindicates the Government’s decision to ignore those estimates as completely worthless. Let me address specifically the issue of the long-term They were touting for business, the estimates had no institutional investors. The hon. Gentleman is absolutely value whatever and we were quite correct to ignore right to say that one of the key objectives, to which I them. Much of the propaganda that he and his colleagues attach particular importance, was ensuring that the have developed over the past few years has proved to be long-term institutional investor base was strong, and completely beside the point. indeed it is. When the hon. Gentleman looks at the breakdown of share ownership, he will see that between Let me make a final point on valuation. The hon. two thirds and 70% of the shares held as a result of Gentleman gave us a lecture on the dangers of undervaluing the IPO are held by those long-term institutional investors. public assets, but let me just quote to him his Government’s When we put that with the Government’s retained experience of the difficult art of valuing assets. The shares and those of the workers, we see a very large former Prime Minister, the right hon. Member for majority of investors who are committed to the long-term Kirkcaldy and Cowdenbeath (Mr Brown), sold large strength of the company. One does have to ask the quantities of gold at between $250 and $300 an ounce, question: why did some of the long-term institutional but the price subsequently increased to more than $1,500— investors sell? Some bought, some sold. The reason they five times the original value. That is the nature of the sold was that they considered the share price after highly volatile markets in which we have to operate. sale was overvalued. It was an obvious market reaction, The NAO report reached the important conclusion and that was the consequence. None the less, having a that we had successfully achieved our objectives. Under long-term investor base remains a basic objective, and this Government, we have taken a loss-making public we have achieved that fundamental objective. enterprise and turned it into a highly successful, respected Let me turn to the issue of the valuation, to which so public company. much importance is attached. It should be blindingly obvious, although I do not think it is to the Opposition, Several hon. Members rose— that trying to sell 600 million shares at one go is a fundamentally different proposition from the 2 million Mr Speaker: Order. There is much interest in this to 3 million sold in daily trading, which explains why subject that I am keen to accommodate, but some the price has varied since the flotation. pithiness from Back and Front Benchers alike would be I have said and I continue to say that there is a great appreciated. [Interruption.] Order. The Secretary of deal of froth in the valuation of this and other shares—that State was sorely tested by a lot of very noisy heckling. It is how equity markets operate—and this particular is always a pleasure to listen to the right hon. Gentleman, share is surrounded by a great deal of volatility. There and I know that he will take it in the right spirit if I are two main reasons for that. The first is a great deal of gently point out to him that his response to the shadow uncertainty over industrial relations in a company that Secretary of State was four times longer than his original has had a very troubled industrial relations history. It statement. A degree of economy would help us all, and is worth pointing out—I do not know whether the I feel certain that this exercise will be led by the illustrious hon. Gentleman noticed—that the mere mention last figure of Mr Brian Binley. week of a Unite strike took the stock price down by 20p. That was the context in which we had to make Mr Brian Binley (Northampton South) (Con): The the sale. The second key point—[Interruption.] Iam evidence that the Select Committee heard on this issue trying to respond to the hon. Gentleman’s points. showed that the prime movers in the bid, as contracted [Interruption.] by the Department, had a range of up to £3.30. They 729 Royal Mail1 APRIL 2014 Royal Mail 730

[Mr Brian Binley] congratulated on having privatised Royal Mail so successfully? Does my right hon. Friend agree that it confirmed to the Secretary of the State that no bidders does not lie in the mouths of those who left this country would go above that level. That proved to be totally with an eye-watering public deficit to talk about concern untrue. Their colleagues who helped build the book for the taxpayer’s interests? made a killing at the expense of the taxpayer. Can we be assured that such a debacle will not happen again, that Vince Cable: The right hon. Gentleman’s initial remarks the system will be changed, and that there will be a are apposite. Successive Governments have tried to fairer deal for the taxpayer than we have got from this privatise the Royal Mail for a long period. I would unethical and, quite frankly, immoral procedure? understand it if the Opposition had taken a principled stand on public ownership, but they have not. Indeed, I Vince Cable: I think that the hon. Gentleman inherited a failed privatisation from the Labour Government misunderstands the basis on which the valuation was and we made a success of it. made. It was based on a sampling of 5,000 potential buyers among institutional investors and on a comparison with similar privatisations, such as that of the Belgian Lyn Brown (West Ham) (Lab): We now know that the post office. The process was rigorous and it had nothing Royal Mail trebled its profits while in public ownership. whatever to do with the undue influence he describes. Does that not undermine the Government’s case for flogging it off in the first place? Mr Adrian Bailey (West Bromwich West) (Lab/Co-op): The fact remains that the key determinants of the Vince Cable: It does not at all. The fact that the Royal pricing were a select group of banks, acting as advisers Mail was improving its commercial performance is very to the Government or in the book-building process. good news, but it was over one year and it had to be From the perspective of the taxpayer, the sight of banks sustained. The only way in which its profitability could advising the Government on a price and then buying be maintained was through large-scale investment, and shares at that price and selling them at a profit or, in the only way in which it could entertain making large-scale some cases, subsequently buying them at higher prices investment was by using capital markets under private absolutely stinks. Will the Secretary of State assure us ownership. that, in any future privatisation, no bank that is involved in advising the Government on the price level will be Stephen McPartland (Stevenage) (Con): Does the allowed to buy shares? Secretary of State agree that by providing access to capital, rewarding workers with 10% of the shares for Vince Cable: The Government’s advisers were from free and maintaining the universal service obligation, Lazard, which had no financial incentive whatever in we are providing long-term value for the taxpayer? the sale. Lorely Burt (Solihull) (LD): Does my right hon. Vince Cable: Yes, I do. We need to go back to the Friend agree that, despite the great hindsight shown by fundamental reason why not just this Government but the Labour party, the decision was taken on the basis of the Labour Government accepted that the company the risks that we faced at the time? We should not have had to go into private ownership: it was about mobilising taken risks at any cost. If we had, the Labour party a large amount of investment without it falling on the would be criticising us for a failed privatisation instead public accounts. That is what we have achieved. of a successful one. Pete Wishart (Perth and North Perthshire) (SNP): Vince Cable: My hon. Friend is absolutely right. I Seventy-seven per cent. of Scottish people opposed the strongly suggest that the Opposition Members who are Royal Mail privatisation and 78% of Scottish MPs getting excited read the NAO report carefully, because voted against it, but Scotland got it. After this travesty, it spells out what would have been the costs to the what should the Scottish people do this year to ensure taxpayer had the IPO failed. that we get the postal services that we want and require?

Mr Dennis Skinner (Bolsover) (Lab): Is the Secretary Vince Cable: I am aware that the Scottish National of State aware that what he has said will reverberate party has said that it will renationalise the Scottish bits every single day until the general election, including in of Royal Mail if it gets independence. It has not explained Twickenham, as those postmen and women who have how it will pay for that, nor has it explained how it will been slagged off by him from the Dispatch Box today pay for the extra cost of the universal service obligation talk on every single doorstep? What they all want to in an independent Scotland. know is that not one single penny from those priority bidders will finish up in the pockets of the Tory party or Jake Berry (Rossendale and Darwen) (Con): Did my the Liberal party. right hon. Friend receive any representations from the Vince Cable: Most of the Communication Workers advisers on the IPO price in relation to the damaging Union members I meet acknowledge the considerable industrial action that was proposed by the trade unions value of the shareholdings that they now have—they to coincide with the privatisation? own the company. Vince Cable: Certainly, one of the significant factors Sir Tony Baldry (Banbury) (Con): Not even Michael hanging over the privatisation was the threat of industrial Heseltine at the zenith of his ministerial powers and action. There was no point in postponing it, because the capacity felt that he would be able successfully to privatise industrial action would have been rolled over. It certainly Royal Mail. Are not ministerial colleagues much to be had a depressive effect on the market. 731 Royal Mail1 APRIL 2014 Royal Mail 732

Mr Ben Bradshaw (Exeter) (Lab): Most people who Paul Burstow (Sutton and Cheam) (LD): The NAO are responsible for such ruinous incompetence at least report shows that about 167,000 employees of Royal Mail consider their position. Has he? —nearly 100%—have taken up the option of the free shares, which has given them a stake in its future. When Vince Cable: Absolutely not. It was a successful operation a sale delivers nearly £2 billion to the taxpayer, creates and the National Audit Office confirms that. nearly 700,000 retail investors and gives so many people a stake in the future of their business, is it not something Mr David Nuttall (Bury North) (Con): Despite the that we should celebrate? accusations that the Government undervalued the property assets of Royal Mail, will my right hon. Friend confirm Vince Cable: Our party has always been a strong that the public prospectus provided a complete picture believer in worker share ownership, and we have taken of their value? one of the biggest steps forward in recent years as a result of that process. Vince Cable: Yes, indeed. That is one of the specific points that was raised by the Business, Innovation and Jeremy Corbyn (Islington North) (Lab): The Secretary Skills Committee. An independent evaluation of the of State has given an estimate of what profits the public property assets was carried out and that was disclosed will make from their 30% share ownership in the company. properly in the prospectus. Will he say what the loss of profits would be to the public over the next five years had we done the correct thing and kept Royal Mail in public ownership? Julie Elliott (Sunderland Central) (Lab): When the Secretary of State gave evidence to the Business, Innovation Vince Cable: The National Audit Office assessment is and Skills Committee about this issue in October, when the exact opposite and it accepts a valuation of Royal I was still a member of the Committee, we questioned Mail under continued public ownership as being him about what we perceived to be an undervaluation. considerably less than the value that has been realised. He said that rather than looking at the value a few days after flotation, it would be more realistic to look at it Jacob Rees-Mogg (North East Somerset) (Con): Does after three or six months. We are now there and it was my right hon. Friend agree that almost all initial public clearly undervalued. What does he say to the British offerings are put forward at a discount—indeed, at a people about giving away one of our national assets? larger discount than secondary public offerings because there is no market in the shares until the offering has Vince Cable: I think that what I actually said was been made? Does he also agree that because of the large between three and six months on the one hand and a supply that comes on at the point of an IPO the year on the other. I have subsequently been criticised by discount has to be considerable, and that the stock price people in the market, who feel that that is too short a having done so well is a sign of enormous confidence in term and that two years would be a better perspective. the economic policies of Her Majesty’s Government?

Mr Ben Wallace (Wyre and Preston North) (Con): Vince Cable: My hon. Friend has given me a wholly May I declare my interest as a former employee of new argument to deploy, and I will do so in future. QinetiQ? Will my right hon. Friend reflect on the National Audit Office report on the privatisation of that company Ann McKechin (Glasgow North) (Lab): The under the last Government, which not only concluded Government’s advisers, Goldman Sachs, made more that they undervalued QinetiQ, but strongly criticised than £12 million profit from the sale of Royal Mail shares the management incentive scheme, which rewarded the —a gross conflict of interest by any standards. Will the top 10 managers with £107 million of taxpayers’ money? Secretary of State rule out completely the payment of Does he agree that the best thing the Opposition could any bonuses to those advisers, and put the money back do to learn from the privatisation of the Post Office into the public purse? would be to digest that report and come here to apologise? Vince Cable: No bonuses have been paid and there is Vince Cable: Indeed, that was an utter scandal and it no pressure on the Government to make a decision on provided a salutary warning about choosing that approach that at the moment. to privatisation. Stephen Mosley (City of Chester) (Con): We are Mr Jim Cunningham (Coventry South) (Lab): This having this urgent question because the flotation of Government, like the previous Conservative Government, Royal Mail was more successful than anybody thought have form. One need only look at the denationalisation possible up front. Almost 100% of employees took up of the energy industry and the railways, which were sold their shares, 700,000 retail investors bought shares, and off cheap. What will the Secretary of State do about the institutions invested massively. The Government are increase in the price of stamps and the redundancies at now a 30% shareholder. What plans do they have for the Royal Mail? long-term future of their shareholding?

Vince Cable: The hon. Gentleman will know that the Vince Cable: That is an option we wish to keep open first-class stamp is subject to regulation. He assumes and we have no immediate plans to dispose of it. that the commitment to sell off Royal Mail was simply a product of this Government and previous Conservative Kevin Brennan (Cardiff West) (Lab): Seventy per Governments. He seems to have forgotten that the last cent. of the issue was reserved for financial institutions, Labour Government tried to privatise Royal Mail. including hedge funds. This morning on the “Today” 733 Royal Mail1 APRIL 2014 Royal Mail 734

[Kevin Brennan] successful privatisation of Royal Mail, which enables it to compete more successfully in a challenging environment programme, the Minister of State, Department for Business, and give its employees a much more secure future? Innovation and Skills (Michael Fallon) repeatedly said, “We got it away”. Would it have been more accurate for Vince Cable: Yes indeed, and as I pointed out there him to say, “We gave it away to our hedge fund friends were some extremely embarrassing episodes of asset who have given £38 million to the Conservative party”? sales under the previous Government and we have learned from their experience. Vince Cable: That series of connections does not appear very logical. The only significant hedge fund at Mr David Hanson (Delyn) (Lab): Given that the the time of the offering was TCI, which has since sold Secretary of State has confirmed that fewer than 700,000 most of its shares. people now own shares in Royal Mail, at a vastly inflated price, does he at least understand why the other David Mowat (Warrington South) (Con): In his remarks 69 million of us in Britain feel a bit ripped off? the shadow Secretary of State referred to profiteering by spivs and gamblers. Will the Secretary of State Vince Cable: Many of the other 69 million have confirm that the rate at which bankers were paid for this policies with the leading pension funds and insurance offering was approximately half the rate paid for QinetiQ? companies, which were the long-term institutional investors in which these companies are now invested, so there is Vince Cable: That is a helpful point and the NAO actually a much wider benefit. We have repeatedly made report draws attention to the competitive rates paid on the point that had the flotation failed, the rest of the fees. population would have been up for the losses. Pat Glass (North West Durham) (Lab): Despite hedge funds and shareholders making a killing from Royal Bob Blackman (Harrow East) (Con): In the past three Mail, it seems that is not enough. Yesterday, the price of months in my constituency 25% of mail was delivered a first-class stamp went up by more than 6%—more by companies other than Royal Mail. Does my right than twice the rate of inflation. Having failed to protect hon. Friend agree that that represents a direct challenge the taxpayer, what will the Government do to protect to Royal Mail, and that it is vital that the work force the consumer, particularly in the monopoly areas of and private investors put in capital so that it can successfully this now private company? compete against other competitors?

Vince Cable: As I said in response to an earlier Vince Cable: My hon. Friend is right. That is why a question, the price of a first-class stamp is regulated do-nothing option was not viable, and why the alternative and subject to the approval of Postcomm. that the shadow Business Secretary promotes of just letting this drift was not sensible. Royal Mail is subject Henry Smith (Crawley) (Con): I spoke with Royal to severe competitive pressure, and ultimately it is subject Mail employees when I visited their sorting office in to regulation at UK and European level—that is not Crawley a few months ago, and they were pleased with something the Government can stop. All we can do is the free shares they were given. Will my right hon. help equip Royal Mail to face that competition, and Friend say how important that is in terms of employees that is what we have done by putting it under private having a stake in their future business? ownership with access to capital markets.

Vince Cable: Yes, and I think that 140,000 employees Mr Andrew Love (Edmonton) (Lab/Co-op): If the now have shares valued at about £4,000 each. More Minister will not accept responsibility and consider his important than the face value of the shares is the fact position, will he at least admit what a disaster this has that employees have a direct and personal stake in the been for the taxpayer, commit himself to a review of success of the company. That is why we did it. what happened, and reassure the House that it will not happen again? Huw Irranca-Davies (Ogmore) (Lab): Royal Mail has something like 2,000 properties in high-value areas of Vince Cable: There is no disaster or reason to apologise real estate round the country.It was valued at approximately for what has taken place. There are many positive £1 billion, when one of those sites in London is itself aspects of this privatisation, which I have already set equal to £1 billion in real value. How come it was sold out. Of course there are lessons to be learned regarding off so cheaply to the detriment of taxpayers and my more technical criticisms that the NAO has made about constituents? the flexibility of the process, and we will listen to those should such a situation arise again. Vince Cable: I do not think the hon. Gentleman was listening to one of my earlier replies in which I made it Richard Fuller (Bedford) (Con): The comparison of clear that an independent valuation of those sites confirmed this privatisation with QinetiQ is relevant because, the authenticity of what was proposed. It was in the subsequent to that privatisation, many employees in prospectus, and nobody has subsequently challenged Bedfordshire were thrown out of work while the bosses that. ran off with 107 million quid. Can my right hon. Friend advise me how much money the bosses of Royal Mail Sir Peter Luff (Mid Worcestershire) (Con): I have made from this privatisation, and say what has happened been listening with amazement to the crocodile tears to the employees in terms of their security of employment from Opposition Members. Should we not celebrate the and pensions? 735 Royal Mail1 APRIL 2014 Royal Mail 736

Vince Cable: There is no absolute security of employment, Vince Cable: I think the hon. Gentleman is the third but the Communication Workers Union reached what I person who has asked the same question. I will give him think in retrospect was regarded as a good deal with the same answer: an independent valuation has been Royal Mail. There were enormous jobs losses while made of those assets and it was published in the prospectus. Royal Mail was under public ownership. Catherine McKinnell (Newcastle upon Tyne North) Ian Lucas (Wrexham) (Lab): Hedge fund chiefs donated (Lab): Sadly for the British taxpayer, the NAO report is £1.32 million to the Conservative party between September no April fool. The Secretary of State claims that the sale and December 2013. Will the Secretary of State report met all the Government’s objectives. Will he now confirm how much each individual donor made from buying which hedge funds that donate to the Conservative Royal Mail shares and subsequently selling them? party benefited from the sale? If he cannot confirm that now, will he write to me and do so? Will he confirm Vince Cable: I do not think that is a matter for me. whether that was one of the Government’s objectives?

Mr Philip Hollobone (Kettering) (Con): One of the Vince Cable: I can assure the hon. Lady that I have no most attractive features of Royal Mail privatisation has responsibilities for the Conservative party, and I have been the increase in employee share ownership. I am no wish to have any. particularly pleased that free shares were issued to postmen and postwomen, especially the hard-working Nia Griffith (Llanelli) (Lab): The Secretary of State posties in Kettering. Will the Business Secretary tell the seems to be trying to talk about anything except why he House how much the average stake that Kettering posties allowed the British taxpayer to be ripped off by the have in Royal Mail is now worth? underpriced sale of the profitable Royal Mail. Will he give us assurances that his Government will not privatise Vince Cable: As I said a few moments ago, the another national treasure, namely the Land Registry, average stake is estimated to be roughly £4,000. which makes £100 million of profit per year,? Emily Thornberry (Islington South and Finsbury) (Lab): Never mind what the independent report says, Vince Cable: We are looking at the future of the Land Mount Pleasant was sold off for two acorns and a Registry at the moment. It is a respected institution, but button. It is a large development site right in the centre it is having to cope with the challenges of digitisation. of my constituency. An independent viability report There are arguments for and against having private says that 50% of the site could be used for affordable partners. We are looking at what is the best outcome for social housing, but what are the developers saying? the taxpayer and the consumer. They are saying that they can afford only 12%. Boris has stepped in and will presumably come down in Steve McCabe (Birmingham, Selly Oak) (Lab): Does favour of the developers. If the Secretary of State is not the Secretary of State regard this sale as a personal prepared to apologise, will he at least condemn these political triumph? greedy spivs? Vince Cable: Sorry, I did not hear the hon. Gentleman. Vince Cable: I am not sure why I am expected to apologise for a planning decision in the hon. Lady’s Mr Speaker: Order. The Secretary of State did not constituency that relates to an application made when hear the hon. Gentleman. I did, but perhaps he can put the enterprise was under public ownership. his question again.

Jim Shannon (Strangford) (DUP): Does the Secretary Steve McCabe: I will try to say it louder, Mr Speaker. of State agree that the loss of £750 million in one day I asked if the Secretary of State regards the sale as a warrants closer examination or an inquiry? At the time personal political triumph. of the sale, he indicated that no jobs would be lost and that jobs would be retained. The suggestion in the press Vince Cable: Yes, it was certainly a success. today, and from the unions, is that jobs will be lost. Will the Secretary of State say what discussions he has had with the new owners of Royal Mail and those in a Mr Barry Sheerman (Huddersfield) (Lab/Co-op): Will position to indicate whether jobs will be retained? the Secretary of State comment on what many of my very commonsensical constituents are saying? They are Vince Cable: Because we no longer own Royal Mail—we saying that they used to own Royal Mail and now only a are a substantial minority shareholder—we do not dictate very few people own it. Many of these voters are former to it what its manpower policy should be. Many jobs Liberal Democrat voters. They are asking: when did the were of course lost under public ownership. As I understand Liberal Democrats become so converted to this cause, it, the proposal currently being put forward, and which and, if Goldman Sachs and others made such a hash of is being contested by Unite, relates primarily to white the advice, can they get their money back? collar executives rather than members of the Communication Workers Union, but that is a matter Vince Cable: Actually, I made the argument for bringing for them to resolve. private capital into Royal Mail about 10 years ago.

Nick Smith (Blaenau Gwent) (Lab): Is not Royal Bill Esterson (Sefton Central) (Lab): The Secretary of Mail’s property portfolio turning into a property speculators’ State was warned beforehand that he had undervalued goldmine? the sell-off. He did not achieve value for money, and 737 Royal Mail 1 APRIL 2014 738

[Bill Esterson] Regulation of Gambling Advertising Motion for leave to bring in a Bill (Standing Order No. 23) priority investors stand accused of profiteering. The public feel ripped off and will wonder why he is still in 1.16 pm his job. How can this possibly be a success? Jake Berry (Rossendale and Darwen) (Con): I beg to Vince Cable: The hon. Gentleman is just inviting me move, to repeat the statement that Mr Speaker has already That leave be given to bring in a Bill to prohibit the advertising told me was too long, but, yes, it was a success. of gambling on broadcast media before the watershed; and for connected purposes. Tom Blenkinsop (Middlesbrough South and East Opportunities to gamble have increased significantly Cleveland) (Lab): I fear a lifetime of yoga would never in the United Kingdom in the past decade, both offline allow me to perform the contortions the Secretary of and online. Young people today are the first generation State has performed at the Dispatch Box today. I, like to grow up with gambling being seen by society as an my constituents, am very angry that figure 20 on page acceptable form of entertainment or leisure activity. 48 of the NAO report shows that one priority investor The proliferation of online gambling in particular, backed was allocated just shy of 20 million shares and has since through blanket advertising, has brought into the home sold 97% of them. Another, who was allocated about what was traditionally a male-dominated activity that took 18 million shares, has sold 89% of them. Were they place in bookmakers. It is my concern about these changes given priority because they are mates of the Government? in attitude to gambling, particularly in the young, that has prompted me to make this proposal that the law be Vince Cable: The hon. Gentleman seems to be one of changed to prohibit all forms of gambling adverts from the few Opposition Members to have actually read the television screens before the traditional watershed at report, and I commend him for that. There were, of 9 pm. course, other companies and priority investors who The number of TV gambling adverts has risen by a invested considerably more. Indeed, I think that one has staggering 600% since the law was changed in 2007, increased its stake by well over 100%. when the sector was deregulated. These adverts now While I am on my feet—I think this is the last question equate to one in 24 adverts on television. Ofcom research —may I just correct a slip of the tongue where I referred shows that gambling commercials have rocketed from to the regulation applying to the first class stamp? just 234,000 in 2007 to 1.4 million last year. Under-16s Obviously, it applies to the second class stamp. are on average exposed to 211 adverts a year. This figure includes children as young as four who have seen and Mr Speaker: I am pleased to say to the Secretary of acknowledged the adverts. Bingo, the lottery and football State that the pace quickened and we got through pools have always been able to advertise on television. 40 Members in 37 minutes of exclusively Back-Bench However, the Gambling Act 2005 made a specific exemption time, so I am deeply grateful to the right hon. Gentleman from the more general ban on advertising before the and to colleagues. watershed for sports betting, largely because most matches takes place before the 9 pm watershed. Most sporting events attract younger viewers and recent events that I BILL PRESENTED have watched have been saturated with such adverts for sports betting. NATIONAL PARKS (GOVERNANCE) The rising number of young people who report Presentation and First Reading (Standing Order No. 57) themselves as gambling is stark. A report for the National Tim Farron, supported by Roger Williams, Dr Julian Lottery Commission by Ipsos MORI in 2013, surveying Lewis and John Woodcock, presented a Bill to give more than 2,000 11 to 15-year-olds from 100 state- powers to the Secretary of State to provide for elections maintained schools, showed that no less than 15% of to be held to the governing boards of National Parks on young teenagers had engaged in some form of gambling a pilot basis; and for connected purposes. in the previous week. Some 2% of 11 to 12-year-olds Bill read the First time; to be read a Second time on and 1% of those aged 16 to 24 are estimated to have a Friday 6 June, and to be printed (Bill 194). gambling problem. That equates to approximately 127,500 young people who report themselves as having a gambling problem or addiction in the UK today. It is not just the young people themselves who pay the price for their addiction; it is often society in general. Problem gambling is connected with a number of negative outcomes for young people. It has been linked to poor mental health, including major depression, attention deficit hyperactivity disorder, and anxiety. It is also linked to crime—to feed the desire to gamble—and often, unfortunately, to substance abuse among the same group of young people. Many adults who present themselves for treatment for a gambling addiction or other problem say that their gambling started during childhood. Those facts make the worrying increase in the number of under-16s who are gambling not just a problem for today, but one that will have serious consequences for years to come. 739 Regulation of Gambling Advertising1 APRIL 2014 Regulation of Gambling Advertising 740

GamCare, the industry-funded helpline and help centre with which we now view tobacco advertising, smoking for those who have a problem with gambling, said in restaurants, and people not wearing seat belts in cars. recently that 60% of its calls had come from those aged We must act now: it is time to stop gambling with the between 18 and 35. The most recent evidence shows future of our young people. that the number of people who are in danger of becoming problem gamblers in this country is nearly 1 million, and that the number of hardcore addicts has doubled to 1.25 pm 500,000 in the six years since deregulation. It could not Philip Davies (Shipley) (Con): My hon. Friend the easily have been predicted when the law changed in Member for Rossendale and Darwen (Jake Berry) is a 2007, following the Gambling Act 2005, that the growth good man, but in this instance he is badly misguided. in smartphone technology would cause such an expansion During the last Parliament, under a Labour Government, in the gambling industry, but it is now irrefutable that I came to expect an assault on freedom and a triumph the number of opportunities to gamble have proliferated, for the nanny state. That is what we expect from the and that the law has simply failed to keep up with Labour party, because that is what it is in business to technology. I believe that there is a direct causal link do. It is always incredibly sad when the march of the between the deregulation of gambling, coupled with a nanny state and the illiberal side of the argument are to massive increase in advertising, and the increase in the be observed on the Conservative Benches, and I therefore number of young people who are gambling today. take no pleasure in having to respond to a move of this I do not wish to prevent any adult from having access kind from our side. to gambling, or from receiving information about it. It is interesting that my hon. Friend should have However, it is an age-related activity, and it seems only talked about the watershed. The watershed is, of course, right and proper for us to protect young people from becoming an increasingly redundant method of dealing being exposed to advertisements for what is for some, with advertising, because people can play programmes albeit a small number, an addictive and harmful activity. back and view them at any time of day. I am not sure Advertisements on television have great power. Young that the watershed is a forward-looking mechanism that people, and indeed some adults, believe that if something my hon. Friend would wish to use even if anyone were is advertised on TV, it is bound to be harmless. Constant to support his line of argument. advertisements for gambling condition young people to The point that my hon. Friend forgot to make when believe that it is a fun or glamorous activity; indeed, he was talking about children gambling is that it is some advertisements are endorsed by celebrities. We illegal for anyone under the age of 18 to enter a betting must restrict such advertisements to adults, who are shop or place a bet there, or to place a bet online. If his better able to weigh the odds, to understand the risks contention is that people are breaking the law, he should and, crucially, to deal with the consequences of any surely introduce a measure to try to ensure that the law gambling losses. Tobacco advertisements were banned as it stands is enforced. That, rather than nanny-state from television in 1991, and we must act similarly now measures such as this, is the way in which to solve the to ban gambling advertisements before the watershed. problem. Before proposing the Bill, I spent some time visiting Some people have argued that gambling companies an NHS clinic in Soho that treats those suffering from are making advertisements in order to groom a future gambling addiction, and heard at first hand about the generation of gamblers. Anyone who thinks that any impact of advertisements on recovering addicts. I have company puts out advertisements in the hope that in also been in touch with parents and grandparents about five years someone might place a bet or take out a throughout my constituency, all of whom have spoken contract with it is living in cloud cuckoo land. Long-term to me of their deep concern about the way in which thinking for most businesses tends to relate to the their experience of watching television with their children end of the current financial year. The idea that the and grandchildren is changing. Gambling advertisements purpose of these advertisements is to store up future now seem to dominate their screens, and children ask generations of customers is absolute nonsense. them about gambling and about how they can gamble I was also interested to hear what my hon. Friend during sports matches. I have also worked with local envisaged being covered by the Bill. He seemed to be churches, which have given me fantastic support, and against the advertising of gambling if it involved horse are advocating and praying for a change in the law. I racing or sports betting, including online betting, but to thank them all for the work that they have done. think that all other forms of gambling were fine. Bingo I recently launched the website BackBerrysBill.tk to would presumably be fine; poker might be fine; perhaps give people an opportunity to sponsor the Bill. In just financial products, whose the value can go up or down— two weeks, it has been signed by nearly 1,000 residents which is certainly a gamble—would be fine, or perhaps of Rossendale and Darwen, along with other people the Bill would ban advertisements for them. I am not throughout the country. This is a public lobby asking entirely sure what my hon. Friend’s definition of gambling for change, and I hope that the Government will act. I is, but if it involves getting rid of advertisements for the am delighted to have the support of Members on both Sun Life Over 50 Plan on the basis that its value can sides of the House who are helping to prepare and go down as well as up, that will probably be welcomed bring in the Bill, but while I welcome the Government’s by many people who currently have to suffer those announcement that they are working with the Advertising advertisements. Standards Authority to review the law, I urge them to I should certainly like to know whether bingo would act now. be involved, because only last week the Government Let me end by saying that I hope that, in years to were lauding the fact that they were encouraging more come, we shall look back at gambling advertisements people to play bingo and gamble on it. My hon. Friend’s on television before the watershed with the same incredulity boss, the party chairman, even put up a poster to that 741 Regulation of Gambling Advertising1 APRIL 2014 Regulation of Gambling Advertising 742

[Philip Davies] referred concluded that the overall rate of gambling is the lowest in the data series. That research also shows effect. Perhaps my hon. Friend has presented this Bill only that the number of children who reported gambling a week later because of the response to that advertisement. online in the previous week had fallen from 3% to 1% Perhaps he wants to prevent his boss from producing since the liberalisation of gambling advertising. another advertisement for bingo in the future. Let me My hon. Friend talked about the people aged between say as an aside that I thought that the party chairman’s 16 and 24 who had a gambling problem. He would be poster should have read “The Conservatives, cutting better advised to seek a change in the law to stop 16 and taxes on bingo—the only person sweating is Ed Miliband”, 17-year-olds being able to gamble legally on the national but then I realised that the idea of anybody sweating lottery. It would be much more helpful if we allowed all might well be an alien concept to people down south, gambling only at the age of 18. If he introduced a Bill to and would probably have been lost on the leadership of increase the age at which people can gamble on the the Conservative party. lottery from 16 to 18, he would have my wholehearted I am not sure why my hon. Friend seeks to have a go support. I hope that he will consider that. at certain forms of gambling but not others. I am not All the available academic research indicates that the sure why losing £5 in a game of bingo is very much impact of gambling advertising on young people and better than losing £5 on a bet on the Grand National; it problem gambling is relatively small. The Government seems to me that if you lose £5, you lose £5, and the are already reviewing all the advertising rules and codes form of gambling does not really matter. that apply to gambling. That review will report in the Of course, children do not just watch TV, they look at autumn. lots of other media—for example, they read the newspapers. Gambling advertising is important to the gambling Does my hon. Friend want to ban advertising by gambling industry but also to the advertising industry and the companies in newspapers lest a child see it? That seems broadcasters. It is a huge revenue stream for companies a rather ridiculous extension of the Bill, but I cannot such as ITV and Channel 4 that helps them make the understand why, logically, he would allow advertising in high-quality programmes that we all wish them to make. newspapers but not on TV. That makes no sense. I do not see the need to deprive them of that income. The Bill’s other unintended consequence is that it Time has defeated me, but let me say that, of gambling would deny betting companies the opportunity to promote adverts on TV in 2012, there were 532,000 for bingo—the responsible gambling. I would have thought that we gambling that the Government appear to want to promote should encourage bookmakers to use their advertising to all and sundry—which is 38% of all the advertising. space to encourage people to bet responsibly and set There were 411,000 adverts for online casinos and poker; financial and time limits—that is a noble thing to do 355,000 for lotteries and scratchcards; and just 91,000 —but the Bill would prevent bookmakers from promoting for sports betting, which is the focus of the Bill. responsible gambling to their customers. The measure is an extension of the nanny state. It is Of course, most daytime programmes that would be illiberal and not backed up by any available evidence. I affected by the Bill are targeted at older people. During therefore hope that colleagues will reject it. I do not term time, we would like to think that most children are intend to try to deny my hon. Friend his opportunity at school. If people want to advertise on TV at a time today by seeking a Division. However, I hope that, in when children cannot see it, during the day in term time the fullness of time, the Minister will reject the Bill is probably the best time. Yet my hon. Friend wants to because it is just an extension of what we would have ban adverts on TV at that particular time, which seems expected from the last Labour Government. to defeat his object. Question put and agreed to. Problem gambling is declining in this country, despite Ordered, the increase in gambling advertising. The Minister knows That Jake Berry, Mr Stewart Jackson, Mr David that the latest health survey for England records overall Lammy, Gordon Birtwistle, John Woodcock, Pauline problem gambling at between 0.4% and 0.5%. That is a Latham, Fiona Bruce, Jim Shannon, Alistair Burt and reduction from the 0.6% to 0.9% range in the previous Sir Tony Baldry present the Bill. gambling prevalence survey. The number of children Jake Berry accordingly presented the Bill. gambling is the lowest ever. The survey to which my Bill read the First time; to be read the Second time on hon. Friend the Member for Rossendale and Darwen Friday 16 May, and to be printed (Bill 195). 743 1 APRIL 2014 Finance (No. 2) Bill 744

Finance (No. 2) Bill coalition to clear up the mess. The Bill takes further steps to do that. A Labour party that stands in its way is Second Reading a blockage on the road to recovery. Mr Speaker: I inform the House that I have selected the reasoned amendment in the name of the Leader of Pete Wishart (Perth and North Perthshire) (SNP): the Opposition. The Chief Secretary to the Treasury will of course be grateful to Labour for voting with his Government on the welfare cap. Was he as surprised at that as I was, 1.36 pm however, given that he will have observed what happened The Chief Secretary to the Treasury (Danny Alexander): in Perth, with all those weekend socialists proclaiming I beg to move, That the Bill be now read a Second time. their commitment to the left-wing cause, only to come The Bill is certainly substantial—602 pages, 295 clauses down here and vote with the Tories? and 34 schedules—but it is packed with measures that will help British businesses invest and create jobs, help Danny Alexander: The hon. Gentleman is wilfully British households work and save, and help ensure that misinterpreting what the welfare cap is about. If he had everyone in Britain pays their fair share of tax. It takes listened to my speech summing up the debate on the forward the Government’s long-term plan to create a welfare cap last week, he would have discovered that the fair, competitive and transparent tax system that is cap was a means of ensuring transparency and enforced effectively, in stark contrast to the uncompetitive accountability to the House in relation to increases in and leaky regime that we inherited from the Labour welfare expenditure. In the past, welfare increases were party. smuggled through the forecasts without proper transparency I will begin by talking about the measures that boost and scrutiny.The reforms will ensure that, when expenditure growth and investment, deal with those that cover avoidance is forecast to breach the cap, the Minister responsible and aggressive tax planning, consider those that help will have to come to the House and explain why the working people and savers, and finally come to pensioners. breach is happening and what he or she intends to do about it. That could include introducing measures to Mr Kevan Jones (North Durham) (Lab): Will the reduce expenditure; it could also include an increase in Chief Secretary tell the House at what point in the last the cap, if that is regarded desirable. Given that the hon. Parliament he, as a Liberal Democrat, objected to the Gentleman’s party seems to believe that, under Labour Government’s spending targets? independence, it would be possible for taxes to fall and for expenditure to rise without the chickens coming Danny Alexander: I cannot put a time and date to it, home to roost, it is not surprising that it should oppose but I recall several occasions when I and my Front-Bench measures to increase accountability to this House on colleagues, particularly my right hon. Friend the Member expenditure. The result of the vote last week showed, for Twickenham (Vince Cable), objected to the Labour however, that the House as a whole welcomes the party’s plans. Labour Front Benchers, when they were opportunity to hold the Government to greater account in government, ignored warnings from the Liberal for expenditure increases in that area. Democrat Benches for a number of years before the financial crisis, and that led, to a considerable extent, to Guy Opperman (Hexham) (Con): My right hon. Friend the mess that was made of the economy when the has set out some of the policies in the Budget, but he Labour Government finally saw what was coming. has not yet mentioned the school funding reform that was introduced before the Budget by the Minister for Mr Jones: The right hon. Gentleman obviously has a Schools, my right hon. Friend the Member for Yeovil problem with his memory. Let me help him. Will he name (Mr Laws) and which will be implemented by the Finance a policy area—for example, health or local government Bill. Does the Chief Secretary to the Treasury agree that —on which the Liberal Democrats said we should those changes, brought about as a result of the f40 fairer spend less money? funding campaign, will have a seismic effect in many counties up and down the country? Danny Alexander: I am tempted to say that we are wandering slightly from the Bill. I can draw the hon. Gentleman’s attention to several measures in the 2010 Danny Alexander: The measures that my right hon. Liberal Democrat manifesto that proposed reining in Friend the Schools Minister has introduced are not actually excessive expenditure by the Labour Government. in the Finance Bill, and I hope that their impact will not be seismic in the literal sense, but I agree with my hon. I note that Labour Members have tabled a so-called Friend that they will make a serious difference to schools reasoned amendment. I point out that we are investing in his area and in other historically underfunded areas in new technology and new energy sources because of of England that have been campaigning for a long time the Labour Government’s failure to tackle rising energy for a fairer level of funding in their schools. I am glad to bills; because of their failure to get young people into hear that my hon. Friend welcomes those measures. work, we have created the conditions for more than 1.5 million new jobs in the private sector; because of their failure to boost housing supply, we have had to cut Charlie Elphicke (Dover) (Con): Are not the most back hundreds of pages of planning laws, and because important aspects of the Bill the things that it will do of their failure to help families with child care costs, we for the least well-off? The previous Government abolished have taken bold steps to introduce tax-free child care. In the 10p tax rate, resulting in the least well-off paying short, because of Labour’s failure to create jobs and higher taxes. Is it not right that this Government are growth and build homes, the British public asked the helping those people? 745 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 746

Danny Alexander: I could not agree more with my Mr Andrew Love (Edmonton) (Lab/Co-op) rose— hon. Friend, and I shall come to those points later. He is absolutely right to say that measures in the Bill will Mr William Bain (Glasgow North East) (Lab) rose— ensure a degree of fairness. Let me begin by describing the measures that will aid Sheila Gilmore (Edinburgh East) (Lab) rose— growth and investment. Hon. Members will be well aware that the economic recovery is taking hold. Jobs Danny Alexander: I am going to make some progress. are up, the deficit is down, the economy is growing and, I will give way again later. as we have seen from this morning’s figures, productivity The measures relating to the annual investment allowance is improving. This growth has come about because of will mean that 99.8% of firms—almost 5 million businesses the nous and the hard work of businesses and individuals —will receive 100% relief on their qualifying investments. in every part of the United Kingdom. We have done our The Bill also provides a much-needed boost for our best, over our four years in office, to create the right tax manufacturing sector by placing a cap on the carbon environment to support their work by reducing the level price support rate. That measure will cut energy bills for of corporation tax, bringing rates for large and small businesses and deliver around £4 billion in savings by firms down to 20%, and at the same time offering 2018-19 without undermining investment in renewables generous reliefs for R and D-intensive firms and the in any way. creative sector. Our reliefs for the film, high-end television However, if we want to build a resilient economy with and video games sectors are among the most generous a broad base of industries that is fit to withstand isolated in the world, and the critical and commercial success shocks, we have to provide support across our sectors. this year of movies such as “Gravity” shows that these That includes supporting those innovative small businesses reliefs really have taken off. that could be the big global brands of the future. That is We know that all the changes we have made across why the Bill further increases the generosity of the our tax system have been responsible for companies R and D tax relief for small businesses. From today, the locating their operations here, and for companies expanding payable credit for loss-making SMEs will rise from 11% their operations here, but we also know that there is still to 14.5%. The Bill will also support investment in the a long way to go. The Bill tackles some of the challenges high-growth-potential companies that need it most. The facing our business community and our economy. We seed enterprise investment scheme, which has already recognise that British businesses are still not investing helped more than 1,600 companies to raise over £135 million enough, and that it is only by increasing business investment of investment, will be made permanent. The capital and productivity that we can embed a long-term recovery gains tax reinvestment relief will also be made a permanent that benefits everyone. Let me put that point into feature of the scheme. perspective. If businesses had increased investment by just 10% in 2012, the level of GDP in this country Sheila Gilmore: Will the Chief Secretary to the Treasury would be £12 billion higher today. That is why we need explain why his Government and his Chancellor decided, to use our tax system to encourage further investment on first coming into office, to cut investment allowances, now. The Bill will therefore raise the annual investment saying that they were not a good way of encouraging allowance to £500,000, with effect from this month. investment?

James Morris (Halesowen and Rowley Regis) (Con): Danny Alexander: It was because our first priority in Will not the doubling of the investment allowance have business taxation was to bring down the very high, a specific benefit for manufacturing companies outside internationally uncompetitive headline rate of corporation London and the south-east, particularly in areas such tax. It was 28% when we came into office, and it will as the west midlands and the black country, where come down to 21% this year and 20% next year. We also manufacturers’ order books are full and those companies chose to reverse the Labour Government’s planned are seeking to invest in new plant and machinery? increase in the small firms rate of corporation tax from 21% to 22%. Instead, we took it down to 20%. Those were Danny Alexander: As usual, my hon. Friend is absolutely the right priorities at the start of this Parliament, but right. In particular, the measure will help small and given the present encouraging environment for investment, medium-sized manufacturers outside London; they are it is now important for the Government to put in place the backbone of our economy. incentives to bring some of that investment forward.

Jonathan Edwards (Carmarthen East and Dinefwr) Chris Leslie (Nottingham East) (Lab/Co-op): My (PC): Will the Chief Secretary to the Treasury tell the hon. Friend the Member for Edinburgh East (Sheila House where the UK lies in the global league of business Gilmore) has made a pertinent point. The Government investment as a percentage of GDP? brought down investment allowances from, I think, £100,000 to £25,000—a significant reduction, which Danny Alexander: I do not have those figures immediately kicked in from April 2012. With hindsight, will the to hand, but I can tell the hon. Gentleman that, according Chief Secretary to the Treasury admit that that was a to recent indices from major international firms, the mistake? UK is seen to be in the top two or three countries in the world for companies to invest in. One of the accountancy Danny Alexander: No. firms recently published an index showing that the The Bill also recognises that social enterprises have a environment for investment in the UK was now among role to play not only in growing the economy but in the top half dozen in the world. Our position has rebalancing the economy and in reforming public services. improved significantly in recent years. At present, public services are often ineligible for existing 747 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 748 reliefs. The Bill introduces a new tax relief for investment Having set such competitive tax rates—rates designed in social enterprises at a rate of 30%, the same as for specifically to support businesses—everyone in this House existing venture capital schemes. I believe that this will rightly expects those taxes to be paid, and this Bill unlock up to £500 million of additional investment in continues the Government’s firm action against the social enterprises over the next five years. I hope that persistent minority who continue to seek out unacceptable Members on both sides of the House will welcome that. ways to reduce or delay paying the taxes they owe. We are tackling avoidance by large businesses by taking Mr Don Foster (Bath) (LD): They voted against it. action in this Bill to close down avoidance schemes involving the transfer of profits among group companies Danny Alexander: I am told from a sedentary position and closing a number of other loopholes. that the Opposition voted against that measure. They voted against the whole Finance Bill, of course. Stephen Doughty (Cardiff South and Penarth) (Lab/ Co-op): I am interested to hear the right hon. Gentleman The Bill also introduces three new tax reliefs to talking about tax avoidance. How much of the amount support employee ownership. The Deputy Prime Minister the Chancellor claimed would be raised from the deal has rightly given a high priority to employee ownership, with Switzerland was actually recovered by the UK? and the measures in clause 238 will introduce a capital gains tax relief, an inheritance tax relief and an income Danny Alexander: We anticipate that that deal will tax exemption for employee-owned companies. This bring in about £1.7 billion. That is less than was originally will make the sale of a business into an employee forecast but it is a great deal more than would have ownership structure much more attractive. It will give happened had we continued the previous Government’s employees of indirectly employee-owned companies an position of not having any such deal in place. I draw the income tax relief of £3,600 a year on their bonuses. hon. Gentleman’s attention to the many other Labour That will help to encourage more firms to become tax loopholes this Government have closed. I particularly employee-owned in the years to come and, therefore, to draw his attention to measures on partnerships, where improve the structure of our economy. the revenues expected now far exceed those originally It is also worth reminding hon. Members of some of forecast. I draw his attention to the measures on disguised the other measures this Bill introduces which will support remuneration, which his party voted against in this specific UK industries: it legislates to reform the banding House, disgracefully trying to allow people to continue of air passenger duty; and it includes a measure that to disguise loans as remuneration—his party should be will help make the Glasgow athletics grand prix a ashamed of that. I draw his attention to the annual tax success this summer, putting in place a tax relief for on envelope dwellings, a measure this Government have athletes competing in that competition, which is an introduced to ensure that people who seek to own immediate predecessor to the Commonwealth games. properties through companies pay a proper amount of Having tax reliefs for both the Glasgow grand prix and tax. That measure is raising five times more than was the Commonwealth games will help to ensure, as the originally forecast. So I will take no lessons from him or UK Government rightly should be ensuring, that the any other Labour Member on tackling avoidance and world’s best athletes are encouraged to come to compete evasion. in the Glasgow 2014 Commonwealth games. Everyone, in all parts of this House, hopes they will be an enormous Mr John Leech (Manchester, Withington) (LD): I am success for Scotland and for the whole UK. glad my right hon. Friend is dispelling the myths perpetuated The Bill also includes a package of measures to by the Labour party on tax avoidance. This Government support oil and gas exploration in the UK continental have done more in their four years than was done in the shelf; it introduces a new allowance to support early-stage 13 years of the previous Labour Government to tackle investment in shale gas; and it reduces the tax on beer tax avoidance, and I encourage him to go further. by a penny a pint and freezes the duty on spirits, rightly offering particular support to the Scotch whisky industry, Danny Alexander: I am grateful to my hon. Friend for as Scotch is one of this country’s most successful exports. his comments, and he is absolutely right in what he says. Those measures will support not only our pubs, but The tax system we inherited was, as with so many other brewers and so on. All those measures, taken together, parts of the previous Government’s economic strategy, cut the costs for business, support innovation, boost full of holes and leaking revenues all over the place. The exports and show that this Bill will help British businesses Labour party had spent all its time on a prawn cocktail to help the British economy grow. offensive in the City, sucking up to the banks, rather than concentrating on making sure that everyone in this Mr Alan Reid (Argyll and Bute) (LD): I wish to country paid the proper amount of tax. As a result of congratulate my right hon. Friend on including in the action we are taking, we are raising—so far—an extra Budget a measure that will help voluntary groups that £60 billion in this Parliament, and before the election support the rescue boats on Loch Lomond and Loch we expect tens of billions more to be raised in revenue Awe. Removing the VAT that such groups have to pay that would not have been raised had we accepted the on fuel is a big help to them. Swiss cheese that Labour left us.

Danny Alexander: I am grateful to my hon. Friend for Charlie Elphicke: May I support my right hon. Friend his comments. The House should note that he is the one in taking no lessons from the Labour party, which, who drew these matters to my attention in the preparation when in government, was too often the tax avoider’s of the Budget, and he has campaigned assiduously to friend? It allowed a culture of industrial-scale tax avoidance ensure that those important bodies are treated similarly to come into existence, and tax revenues were depleted to other emergency services in that respect. by its neglect of the system. 749 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 750

Danny Alexander: My hon. Friend makes his point avoidance scheme rules or the general anti-abuse rule, eloquently and accurately. I do not wish to add anything which this Government have introduced, should pay the to it, but neither would I subtract a single word, as he is disputed tax up front. That will bring forward almost absolutely right. £5 billion of revenue over the next five years and will ensure that those who knowingly enter avoidance schemes Julie Hilling (Bolton West) (Lab) rose— cannot hold on to the disputed tax but have to pay up front, like all other taxpayers. Those actions will radically Danny Alexander: I will give way one more time and reduce both the incentives and the opportunity for then I will set out some of the measures we are taking, individuals and businesses to engage in abusive behaviour. which the previous Government had 13 years to introduce Let me now deal with the ways in which this Finance but failed to do so. Bill will help people in work. This Government have an incredibly proud record of reducing tax for the lowest Julie Hilling: Why were there fewer confiscation orders— paid. Not only are we delivering our coalition commitment raising less money—in 2013 than in 2012? Why did the to raise the income tax personal allowance to £10,000 Government have to reduce the top rate of tax because this week, but we are going further. This Finance Bill people were avoiding paying it if they had been so legislates to set the personal allowance at £10,500 in wonderful at closing all these loopholes? 2015-16. I never tire of telling the House that that policy has travelled from the front page of the Liberal Danny Alexander: The hon. Lady might well ask her Democrat election manifesto to the pockets of tens of own Front-Bench team why they increased the top rate millions of people, in all parts of the UK. of tax for their last few days in office, given that it was clear that it was not going to raise the money it supposedly Mr Love: Some 17% of taxpayers earn less than the would have raised. We have made sure that the wealthiest minimum £10,500 that the Minister mentioned. What in this country are paying a far greater share of income are the Government doing about them? If we really are tax than they did in any year under the previous all in this together, do they not need to focus some Government—[Interruption.] Let me respond to her attention on the least well-paid? point before she seeks to come back on it; I listened to what she said, so she can listen to what I have to say. Danny Alexander: That is an important question. The Measures in that Budget raised five times more from the measures to lift the personal allowance, from a little same group of people. The analysis from Her Majesty’s over £6,500 when we came into office to £10,500 as it Revenue and Customs showed that this tax was not will be in April next year, will mean that about 3 million raising any money, and I would prefer to have the people in this country—most of the people to whom he substance of actually raising revenue from people than refers—are lifted out of paying income tax altogether. the pretence of measures that do not raise any money. That is a serious benefit to those individuals. It also helps to improve incentives to work and to progress in Julie Hilling: Not only has the right hon. Gentleman work in this country and bears some responsibility for not answered the question about loopholes, but the the stronger employment performance that we have truth is that during that short period when the full tax seen in recent years. was in place it raised, and was raising, much more money than has been the case since it was reduced. The Mr Bain: On that point, the Chief Secretary to the Government do not like to look at what happened Treasury has omitted to mention thus far that the during that one full year of the tax being in place. Government will freeze the work allowance in universal credit for the next three years. That means that a person Danny Alexander: I encourage the hon. Lady to read on a low income will not benefit in full from the rise in the detailed analysis published by HMRC more than a the personal allowance. Is it not the case that he is year ago. giving with one hand and taking with the other? Let me deal with some of the measures to tackle— Danny Alexander: The way that universal credit is Stephen Doughty rose— structured means not only that we have a much simpler system, but that most people in the benefits and tax Danny Alexander: I have given way to the hon. Gentleman credits system will keep more of their additional earnings previously, so I am going to make some progress. as they progress in work than they would have done under the extremely complicated, confusing system that This Finance Bill also tackles avoidance by wealthy we inherited from the hon. Gentleman’s party. The individuals by preventing high-earning, non-domiciled work incentive clearly has a positive effect overall. individuals from using dual employment contracts artificially to reduce their UK tax liability. We are Mr Kevan Jones rose— tackling the avoidance of employment taxes by taking action to prevent offshore and onshore employment Danny Alexander: I will give way one more time, and intermediaries from avoiding their obligations. We are then I will make some progress. tackling the avoidance of taxes on residential property through the use of corporate envelopes by creating new Mr Jones: The Chief Secretary to the Treasury says bands for the annual tax on enveloped dwellings and that he is proud that the idea of an increase in personal extending the related stamp duty land tax and capital allowance came from the front page of the Liberal gains tax charges. In addition, the Bill also creates a new Democrat manifesto. Will he explain why his party, requirement that users of avoidance schemes which which campaigned on not increasing VAT, increased have been defeated in another party’s litigation, or VAT when it entered the coalition, affecting some of the which fall within the scope of the disclosure of tax lowest and most poorly paid people in this country? 751 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 752

Danny Alexander: I am glad that the hon. Gentleman In the meantime, the Finance Bill will make some gives me an opportunity to repeat the fact that this initial changes to deliver greater flexibility with immediate policy came from the front page of the Liberal Democrat effect. We are reducing the minimum income requirement election manifesto, and I welcome his confirmation of for accessing pension savings flexibly from £20,000 to that point. He should recognise that the coalition £12,000. We are increasing the annual withdrawal limit Government came together to sort out the catastrophic for individuals in a capped drawdown arrangement economic mess that was made by his party in the from 120% to 150% of an equivalent annuity. We are previous few years. When we came into office, we were increasing the total pension wealth that can be taken as borrowing £150 billion a year—for every £4 we were a lump sum from £18,000 to £30,000, and we are spending under his party, £1 had to be borrowed— increasing the size of a pension pot that can be taken as [Interruption.] I draw his attention, if he is interested, a lump sum—regardless of other pension wealth—from to the distributional analysis of fiscal consolidation £2,000 to £10,000. Taken together, these changes mean that was published alongside the Budget this year, which that more than 400,000 people will be able to access shows that the wealthiest in this country have made the their pension more flexibly in the financial year 2014-15. largest contribution to the fiscal consolidation. Dr Thérèse Coffey (Suffolk Coastal) (Con): My right Mr Jones rose— hon. Friend is being very liberal with his praise for various coalition colleagues. This has been a tremendous Danny Alexander: I will not give way, because I want Second Reading so far in that we are liberating pensioners to make progress. The increase in the personal allowance to make the best decisions for them. That, combined will mean that a typical basic rate taxpayer will pay with the single-tier pension, means that we are putting more than £800 less income tax per year than in 2010-11. people back in charge of their future. That is real action to support the millions of people on low and middle incomes. It helps them to keep more of Danny Alexander: I am grateful to my hon. Friend for what they earn and rewards those who want to work her contribution on these matters and for those specific hard. This Government and this Bill also recognise that comments. She is right that these are very liberal reforms. people who rely on their savings income have been hit They are something of which we as a coalition can be particularly hard by low returns in recent years. It is for proud. We have swept away the morass of means-testing that reason that we are cutting tax on savings for the of pensioners that built up under the previous Government lowest earners. From April 2015, the 10p starting rate of and have ensured that every pensioner has a firm foundation tax on savings will be abolished and a 0% rate will be from the state. They have a better basic state pension extended to the first £5,000 of savings income above the paid at the level of the single-tier pension. There is personal allowance. That will benefit 1.5 million people much greater flexibility for people to choose how to use with low earnings from some savings, and more than additional savings in defined contribution schemes; after 1 million people will no longer pay any tax on their all, it is their money. I would go even further and say savings income at all. that this Government and this Finance Bill are about It is no exaggeration to say that this Government not only freeing up pensioners but providing additional have achieved sweeping reforms on pensions. Under the freedom both for working people to keep more of the excellent leadership of my Liberal Democrat colleague, money that they have earned for themselves and for the Minister of State, Department for Work and Pensions, businesses that wish to invest. my hon. Friend the Member for Thornbury and Yate (Steve Webb), our simplifications and reforms of the Mark Field (Cities of London and Westminster) (Con): pensions sector will be one of this Government’s most I welcome the simplification of the pension arrangements, enduring legacies. Automatic enrolment will see nearly which predates this Budget. As the Chief Secretary 6 million people enrolled in workplace pension schemes rightly says, these flat-rate pension arrangements have by the end of this Parliament. The single-tier pension gone on throughout this Government. Is he concerned will provide millions of individuals with a firm foundation that there will be increasingly strong pressure from the to support their saving, and it will particularly benefit Opposition and others, who will say that the very generous those groups that, under the current system, have tended tax benefits on pensions will be more difficult to justify to build up low amounts of savings. I am talking about if the annuity arrangements—in other words, the guarantee women with broken work records, the low paid and the that this money will be used in retirement—are no self-employed. The triple lock has helped to protect the longer in place? most vulnerable members of our society, and the recent Budget announcements provide us with the final thread Danny Alexander: It is a long-established principle of this coalition’s web of pension reforms. that there should be tax relief on pension contributions. From April 2015 we will allow individuals much This Government have sought to restrict that tax relief. greater choice about how they access their defined We have lowered both the lifetime limit and the annual contribution pension savings. Individuals will be able to limit. I am not sure whether the Opposition’s proposal access their defined contribution as they wish, subject has taken into account the changes that we have made. I to their marginal tax rate, and no one will be forced to am not convinced that changing the rate of relief would take out an annuity if they do not want to. We are well alter very much the amount of money spent, because of aware that this is the biggest shake-up of pensions in the lower limits that we have already imposed. Speaking almost a century—since Lloyd George was the Liberal for myself—this is a matter that my party will be putting Minister in the Treasury. As such, we recognise that it is forward at the next election—the fact that we offer absolutely crucial that we get it right. We are consulting about £35 billion of relief on pension contributions on the detail before making further announcements every year and that more than half of that tax relief later this year. goes to the top 10% of earners is something that is 753 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 754

[Danny Alexander] complete the biggest liberalisation of our pension system in nearly a century. It takes the first £10,000 of people’s worth further examination. As we continue with fiscal earnings out of tax altogether and, as such, is a Bill that consolidation, which is necessary for our economy, we echoes my objective, and that of my party, of building a need to make absolutely sure that we are handling our stronger economy in a fairer society in which every tax system in as fair a way as possible, and not offering person has the best chance to get on in life. I commend unnecessary tax relief to the very wealthiest in society. the Bill to the House.

Jacob Rees-Mogg (North East Somerset) (Con): In 2.12 pm any reform that my right hon. Friend proposes to make to the reliefs that are given on people investing in Chris Leslie (Nottingham East) (Lab/Co-op): I beg to pension funds, will he remember that the money is move, taxed when it is withdrawn? It would be extremely That this House declines to give the Finance (No. 2) Bill a unfair to tax people twice, both on putting money in Second Reading because it fails to address the cost-of-living crisis and then taking it out. which will see working people worse off at the end of this Parliament than at the beginning; because while working people are £1,600 a year worse off it prioritises a tax cut for millionaires Danny Alexander: I certainly do bear that in mind. of on average £100,000; because it offers a marriage tax allowance No party in this House—certainly not mine—is proposing which will help only a third of married couples, rather than a any change to, for example, the tax-free lump sum 10 pence starting rate of tax which would help millions more arrangements, which is an important part of how the families; and because it fails to set out measures to tackle rising policy that my hon. Friend describes is delivered. Some energy bills, get young people into work, boost housing supply people would equally well say that it would be unfair for and help families with childcare costs within this Parliament. someone to receive tax relief at 40% on the way in, but You would not know it from hearing the Chief Secretary, only pay tax at 20% on the way out. There are a whole Madam Deputy Speaker, but this Finance Bill is a range of issues that require a wider debate. In this massive missed opportunity when much more is needed. Parliament, the coalition Government have set out some It has so many pages—the document I have in my hands reforms for pensions tax relief. We have no intention of is only half of it—yet it is a minor Bill when we need going further than the reforms that we have already major reforms to address public concerns. The annuities made and I think that the annual and lifetime limits are changes diverted attention from the shortcomings of the right ways to address this. the rest of the Budget, and that short-term approach reflects the short-term ambitions of the Chancellor and Guy Opperman: I am most grateful to my right hon. the Government at large. Friend for giving way a second time. He has not touched We will seek to improve the Bill in Committee, but it on the regions yet, so I wanted to ask him whether he is is important that we reflect on its contents and on those aware that the Budget was welcomed by the North East things that ought to have been in it but were not. That is chamber of commerce at a time when job numbers are why we propose that the House declines to give the improving, apprenticeships have almost doubled and Finance Bill a Second Reading this evening: it fails to the rise in the personal allowance, which is going through address the cost of living crisis that, as my hon. Friends this week, will see a further 14,000 people taken out of recognise, will leave working people worse off at the end income tax. of this Parliament than they were at the beginning, as the Office for Budget Responsibility has predicted. While Danny Alexander: I had not intended to mention the working people are £1,600 a year worse off, it prioritises regions, but I am glad that my hon. Friend has given me a tax cut for millionaires of typically about £100,000 the opportunity to do so. His point is absolutely right: and offers a marriage tax allowance that helps only a the action we have taken and the economic plan the third of married couples rather than, for example, a 10p coalition has seen through, through thick and thin—the starting rate of income tax that would genuinely help tax reductions for individuals, motorists and so on, millions more families. It also fails to set out measures the measures to support investment in important sectors, to tackle rising energy bills, get young people into work, such as energy and offshore renewables, and the support boost housing supply and help families with child care for exporters—are creating jobs and prosperity up and costs. Those are the priorities that we believe ought to down the country including, I am delighted to hear, in be in the Bill but are not. his area. Mr Reid: The hon. Gentleman refers to the cost of I was outlining the immediate changes to pensions living. Does he not understand that by next year, under flexibility that we are legislating for in the Bill. Taken his party’s policy, my constituents would have been together, the reforms that I listed mean that more than paying 20p a litre more and those on the islands would 400,000 people will be able to access their pension more have been paying 25p a litre more for their fuel than flexibly in 2014-15. We are making these changes because they are under this Government? That would have been this Government believe that those who have worked a disaster for the cost of living of my constituents. Will hard and saved sensibly are in the best position to he apologise to them for wanting to make the cost of decide for themselves how to provide for their own fuel 25p a litre higher in their area? retirement. In conclusion, as I am conscious that many Members Chris Leslie: We are not opposed to the measure that wish to speak in the debate, the Finance Bill is ambitious, the hon. Gentleman mentions, but he ought to be fair, liberal and deals with the biggest issues facing the straight with his constituents. That is only one aspect of finances of British people. It takes further steps to the tax burden that they face. Of course, his constituents deliver long-term sustainable economic growth and to have suffered many other tax rises and cuts in benefits 755 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 756 since the general election, and as we start to walk Charlie Elphicke: The hon. Gentleman says that his ourselves through the Bill we can explore some of his pledges will be fully funded come the manifesto, but priorities. We just need to consider the first set of does he not accept that the fact that the Opposition clauses, under which he will be voting to give millionaires— have so far spent the bankers’ bonus tax more than the richest in society—and those who are fortunate 10 times does not give this House or the people of this enough to earn £150,000 and above, which can of country much confidence that they will be able to add course involve significant amounts of money, a tax cut up when we get to manifesto time? to 45p from the 50p rate that his Government abolished. He willingly went along with that. Chris Leslie: I shall have to send some details to the As well as the personal allowance change that hon. Gentleman, because he is obviously not fully aware Government Members often trumpet, we should have a of the situation. I would never accuse him of misleading 10p starting rate of tax. Government Members have the House, as that would be unparliamentary, but perhaps supported at least 24 tax rises and principally the change he is unintentionally giving an impression that is not to VAT, which has taken hundreds of pounds from the correct. We have said that we would repeat the bank constituents of the hon. Member for Argyll and Bute bonus tax, which was very successful in 2009 and raised (Mr Reid), perhaps by stealth. Perhaps they have not a significant amount of money, and spend it on starter petitioned his constituency office and perhaps, with jobs for the long-term unemployed. He should know that little wry smile on his face, he has been counting about long-term youth unemployment because in Dover the coins that he has been taking by stealth from the it has rocketed since he was elected. wallets and purses of his constituents, but that is a significant amount of money and he should be honest Ian Austin (Dudley North) (Lab): The jobs going to with his constituents about the VAT increase, the so-called young people will be particularly welcome in the black granny tax, the child benefit reductions, the tax credit country, where long-term youth unemployment is twice cuts and all the other changes. as high as it is across the country as a whole. To tackle the issue of plans adding up at the next election, would Mr Reid rose— it not be simple for the Government to follow our Chris Leslie: Perhaps the hon. Gentleman would like proposal to subject our plans to independent scrutiny to take the opportunity to tell the full story. by the Office for Budget Responsibility? Why does my hon. Friend think they will not agree to that? Does he Mr Reid: I am grateful to the hon. Gentleman for think that perhaps the Liberal Democrats in the coalition giving way again. What is Labour’s policy on VAT? If do not want to do that because it would show that their Labour is elected, is the plan to keep it at 20p or will his plans do not add up, as they did not at the last election, party promise to reduce it? when they made a series of promises that they were unable to keep? Chris Leslie: I love it when Liberal Democrats start talking about VAT. Of course, the hon. Gentleman Chris Leslie: I am grateful to my hon. Friend for promised to oppose the VAT bombshell, and my hon. addressing that point. Yes, such transparency would Friends will remember the picture. I do not know help a great deal. Let us elevate the level of public whether he was driving the van that went round Parliament debate and allow an independent assessment of those square at the time; perhaps the Chief Secretary was in policy costings. The public can then decide for themselves the driving seat. Yet the hon. Gentleman has the temerity and make a judgment about the relative merits of the to ask what our position is on VAT. I cannot promise to various policies in the manifestos of the major political get rid of the VAT increase that they have put in place, parties. I know that in his heart the Chief Secretary to contrary to the manifesto on which he stood—yet another the Treasury agrees. I know that he realises that the Liberal Democrat broken promise. When Labour makes Chancellor is standing in the way because the Chancellor promises in our manifesto at the next general election, wants to run the general election campaign by means of we will make sure that they are fully funded and that the smears and falsehoods, giving a false impression of the sums add up. If we do make promises, everybody will be policies of the other political parties. We must grow up clear where the money will come from—[Laughter.] and raise the standard of debate. Let the OBR be the Government Members do not like that idea, because it judge of these things. Ministers can talk among themselves is so foreign to them. They are so used to making and perhaps negotiate concessions so that when we promises that they do not recognise the concept of come to the Committee stage of the Bill, we may be able trying to be honest and straight with the electorate. to reach cross-party agreement on that point.

Charlie Elphicke: Will the hon. Gentleman give way? Charlie Elphicke rose— Chris Leslie: I will give way to the hon. Gentleman in a moment, but I ask him to bear it in mind that it is Chris Leslie: I forgot to give way to the hon. Gentleman. important to be open with his constituents about the Long-term youth unemployment has gone up in Dover full picture of what has been happening with tax and by 125% since he has been its Member of Parliament. benefit changes. He needs to answer a question prompted by the independent Institute for Fiscal Studies, which Charlie Elphicke: Long-term youth unemployment has calculated the impact of all the tax and benefit did go up in my constituency by 300%, and in the hon. changes since 2010 on his constituents. Its conclusion is Gentleman’s constituency by 400%—in the previous that the typical household is £900 worse off after those Parliament. Will he welcome the fact that long-term tax rises and cuts to benefits and tax credits. Does he youth unemployment in my constituency has fallen by disagree with the analysis of the independent IFS? 22% in the past year and in his constituency by 15%? 757 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 758

Chris Leslie: If the hon. Gentleman wants to trade hard-working families who are benefiting from the Budget, statistics, I am more than happy to do so. In my pensioners and people on low incomes? Instead of the constituency there is a significant problem with reasoned amendment, surely there is something that he unemployment, long-term youth unemployment and can welcome in this remarkably popular Budget—go youth unemployment generally, and it has worsened on, have a go. significantly since the general election. He talks about the past 12 months. Let us hope we are turning a corner Chris Leslie: It is simple. It is easy to do a Budget in in aggregate levels of unemployment because it is about which the Chancellor gives a few little things back, such time that happened. The tax and benefit changes and as that penny off a pint of beer—buy 300 pints, get their impact on our constituents are very significant one free—and we are supposed to be grateful for such indeed. I hope to have an opportunity to focus on a few generosity. The hon. Gentleman should be advising his of them. constituents to check their wallets. The thing about this Chancellor is that he takes far more with the other hand Mr Kevan Jones: I asked the Chief Secretary to the than he gives in the first place. That is his fundamental Treasury whether he could remember any time when the problem. Liberal Democrats opposed the Labour Government’s spending commitments. Does my hon. Friend agree Several hon. Members rose— that Conservative Members have amnesia, in that they agreed to our spending targets right up until the banking Chris Leslie: Before I give way, let us look at what is crash in late 2008? If at that time we had followed the happening in the new tax year that is about to begin. I proposals of the present Chancellor of the Exchequer urge my hon. Friends to think, for example, about the and the present Prime Minister in relation to things change hitting some of the poorest households in our such as Northern Rock, that crisis would have been a constituencies, homes on the lowest incomes, which will lot worse. see council tax support withdrawn at a significant level in the new financial year. Some have called this poll tax Chris Leslie: Trying to get inside the heads of the mark 2, with the poorest and most vulnerable households, Liberal Democrats could take quite a long time. The carers, single parents and the disabled seeing their bills Chief Secretary is enjoying his close quarters with the go up by 120%. The Government impose these tax rises Conservative party a little bit too much. The Conservatives in a stealthy way by saying, “Local government, we will have captured him—it is called capture bonding. Sometimes devolve it down to you. It’s your responsibility”, but he even starts to view the abuse or the lack of it as nobody is fooled by their techniques. Look at the squeezed rewarding. That is not coalition; that is Stockholm middle and the extra tax those people are paying. syndrome. Mark Field rose— Guy Opperman: May I return to the issue of the regions? Does the hon. Gentleman agree or disagree Chris Leslie: Before I give way to the hon. Gentleman, with the interpretation of the north-east chamber of he can tell me this: I think about 2 million more people commerce and the Trinity Mirror-owned Newcastle are being sucked into the 40p rate of income tax. I Journal, which welcomed the broad thrust of the Budget’s heard that that caused consternation among Members job-creating policies, its help for small and medium-sized on the Government Benches. From this April, at a firms and apprenticeships, reform of air passenger duty number of levels, people will lose out significantly. and general relief for energy-intensive industries? Mark Field: I will ask the questions rather than Chris Leslie: We should be cutting business rates for answer them, if the shadow Minister does not mind. He small and medium-sized enterprises. I am very surprised implores us to look at the Bill in a balanced way. We that the Government are focusing their help predominantly have heard statements about tax cuts for millionaires on the 2% of the largest multinationals—the big firms—and time and again over the past year and again today in the not doing, in my view, sufficient for that 98% of British House. Does he recognise that the top 1% of British business, the small and medium-sized enterprises. That citizens are now paying the highest share of income tax will be the backbone of a recovery and we have to do that they have ever paid in the history of that tax—some much more to support it. 30%? Purists such as me have at times been mildly It is a shame that in the Bill the Government are critical of the inconsistency of elements of the welfare choosing to go to that 20% rate in April 2015. We could and tax changes that have been made even during this instead use that resource and focus it on the multiplicity coalition Government, but we have gained a hell of a lot of small firms. They are the ones that should be getting of social cohesion in this country— a cut in business rates. We calculate that it would deliver an average tax cut of at least £400 for 1.5 million Madam Deputy Speaker (Dawn Primarolo): Briefly. properties through the business rates system, benefiting small and medium-sized enterprises, which after all are Mark Field:—in marked contrast to many other the backbone of the economy.They provide the dynamism European nations, and the Government should be to get the growth going, which we so desperately need. congratulated on that.

Richard Benyon (Newbury) (Con): I know it is the Chris Leslie: I do not think it helps with social Opposition’s job to oppose, but does the hon. Gentleman cohesion to move from the 50p to the 45p rate. That wonder whether sometimes this is not good politics? He sends a very bad signal, and I know that Members on will be getting the same message from his chamber of the Government Benches will feel that in their constituencies, commerce as I am getting from mine, as well as from especially when the Government are jacking up taxes 759 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 760 and reducing tax credits and other help for some of the Richard Harrington (Watford) (Con): I want to probe poorest in society, while giving that very generous tax the hon. Gentleman further on his answer to my hon. Friend cut—typically £107,000—to the average millionaire at the Member for North East Somerset (Jacob Rees-Mogg). the top of the scale. I do not think a 50p rate is Does it mean that he believes that the last Labour unreasonable. Government made a mistake by not raising the top tax It is unreasonable for Government Members to say rate to 50% for most of the 13 years that they were in that a 50p rate does not raise any money—“we cannot power, and that they should indeed have done so? possibly do it”. If it is telegraphed to that set of high earners at the point at which a 50p rate comes into effect Chris Leslie: I know that Government Members like that it will be going in a year or two anyway, of course to expunge history from their memory banks, but there they can stave off the point at which they draw down was a global banking crisis—I know this is a shock to their dividend from their personal service company. some of them—which, from 2008 onwards, caused Everybody knows how they managed to avoid paying significant fiscal impact, which reduced revenues into that 50p rate. They waited until the new tax year ticked the Exchequer and meant that tax rates had to be over, then they paid the lower rate. It was very simple, reappraised. It was at that point that the 50p rate was which is why in the statistics we suddenly saw bonus felt necessary, as one of the measures of fairness that we payments go through the roof, sky high, at the point needed to put in place. I am proud that that Government when the 50p rate fell to the 45p rate. We should have took that step. It was not universally popular, as I know been allowed a proper assessment of what happened at from Government Members, but necessary in order to that point. help to reduce the deficit, whereas the Government chose to raise VAT and pull the rug from underneath Jonathan Edwards (Carmarthen East and Dinefwr) growth that was beginning to come through in 2010. (PC): I am listening intently to what the hon. Gentleman I want to continue to scrutinise some of the details in says and I agree with the point he makes, but can he the Finance Bill, because it contains a number of troubling explain why the Labour party proposes only a temporary changes. On capital allowances, my hon. Friends intervened return to the 50p rate, rather than a permanent return? on the Chief Secretary, and I also asked whether he thought it was a mistake that when taking office the Chris Leslie: We have said that a 50p rate needs to be Government reduced capital allowances—investment the policy for the next Parliament. We make judgments allowances—for businesses from £100,000 to £25,000. in manifestos from one Parliament to the next. Tax Yes, they are going back up again, but yet again we see policy should never be written in perpetuity. We have more chopping and changing, more inconsistency; said that while the deficit is likely to be as high as it is, temporary measures, not giving the stability to business the 50p rate is justified. The hon. Member for Cities of that it needs to plan for the long term. The Chief London and Westminster (Mark Field) talked about Secretary says that it was not a mistake that they should social cohesion. While the process of deficit reduction go down and now they are going up, but that, I am will now have to continue well into the next Parliament, afraid, is typical of Liberal Democrats who like to face when it was not expected, the 50p rate is perfectly both ways on these matters. justified for good social cohesion reasons. In chapter 2 we have the married couple’s tax allowance. The Chief Secretary is deep in conversation, but I want Jacob Rees-Mogg: Will the hon. Gentleman give to give way to him in a moment specifically on the issue way? of the married couple’s tax allowance. [Interruption.] From a sedentary position, he says that he will not Chris Leslie: How could I resist the hon. Member for intervene, but this is a critical point because I am not North East Somerset (Jacob Rees-Mogg)? quite clear on his view of the married couple’s tax allowance. The Chancellor was apparently in a little bit Jacob Rees-Mogg: I am extremely grateful to the hon. of doubt about it, but the pressures from Conservative Gentleman for giving way to me on behalf of North Back Benchers were such that they needed this transferrable East Somerset. Is he therefore saying that he believes allowance, which will help only about a third of married that the 50p rate is a good thing in and of itself for the couples because it is available only to couples where one symbolism that it brings to bear, even if it does not raise person is in work but the other does not use all their any money? tax-free allowance. There are a number of other ways in which that amount of money could have been allocated. Chris Leslie: I think it will raise a significant sum to He could have decided to do it through the personal help to alleviate the burden on lower and middle earners, allowance—I know he is keen on that policy—perhaps and that is why it is important to have it. If it is there for a 10p starting rate of tax. Does the Chief Secretary not just a temporary period, but for a significant period, agree with the implementation of the married couple’s it would settle and be an important part of the tax tax allowance? This is his opportunity to set out the system. But generally speaking, of course we all want Liberal Democrat attitude to these things. I will give all taxes to come to a lower level. I do not want to see way to him. The record will have to show that, for taxes higher than they need be, but the hon. Gentleman whatever reason, the Chief Secretary does not want to has to understand that the context will be, I am told, a stand up and sing the praises of the married couple’s potential £75 billion deficit to be inherited by the next tax allowance in this particular agenda. Yet again, he is Government—I hope the next Labour Government—a stifled by his capture by the Conservative party, unwilling significant amount of borrowing, hanging around the to speak his true mind on these issues. necks of whoever wins the general election, made worse On the employment measures in the Bill, such as they by the fact that the Government promised that it would are, yesterday the Chancellor was full of rhetoric about have been eradicated altogether. full employment, yet the Government have come forward 761 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 762

[Chris Leslie] than would otherwise have been the case. All I know is that the Chancellor used the annuities issue to provide with no new policies to deliver this. The number of a veneer of long-termism over what was otherwise an young people out of work for 12 months or more has exceptionally short-term Budget and what is an nearly doubled since the Chancellor and Chief Secretary exceptionally short-term Finance Bill. came to office, and we have a record number of people Clauses 112 and 113 deal with the old question of the who want to work full time but are being forced to work bank levy. My hon. Friends will be familiar with the part-time, a Work programme that is so spectacularly Government’s track record on the bank levy. We will unsuccessful that people are more likely to go back to scrutinise those clauses very closely indeed, because The the jobcentre than find work, and only 5% of disabled Daily Telegraph, among others, has reported that they people on the Work programme have found work through could mean a secret tax cut for the banks. Last year Barclays that programme. We clearly need compulsory starter paid £504 million in levy charges and HSBC paid jobs for the long-term unemployed to help them to £544 million—the most of any bank. But under the repair their CVs and to get back into work and on to draft proposals the Chief Secretary is bringing forward the ladder to a long, sustainable career. in the Bill, Barclays’s bill would have been £129 million lower and HSBC’s would have been £169 million lower. Stephen Doughty: I agree with my hon. Friend on the What is going on? Given that the levy was supposed to compulsory jobs guarantee, and it is a great shame that catch up with the lack of collection in previous years—it we do not see such a measure in the Bill. Does he agree was supposed to increase by 20% this year—it seems that there is a massive contrast between this Government very strange that these clauses might give the banks a when they took office and cancelled the future jobs very significant saving indeed. fund, and the Welsh Labour Government in Cardiff The purpose of the bank levy, of course, was to allow who introduced the jobs growth Wales scheme, which the Government to take £2.5 billion every tax year. It has now seen nearly 12,000 people across Wales benefiting, was an unusual tax because they set the amount of and one of the lower rates of unemployment in the UK revenue to be raised and the methodology revolved because of that measure? around that. In its first year, the levy brought in £1.8 billion, which was a significant shortfall. Things got worse the Chris Leslie: Conservative Members love to bash next year, because in 2012-13 it raised just £1.6 billion. what is going on in Wales. They have an anti-Welsh My hon. Friends know the attitude Her Majesty’s Revenue attitude to these things, but it is one of the great success and Customs takes to our constituents if an amount of stories of devolution, making sure that they focus on a tax they are asked to pay is not forthcoming, but that is meaningful back-to-work scheme, particularly for those not the case when it comes to the banks. It has gone soft who have been out of work for a prolonged period. in collecting the amounts of money the levy was supposed That is what we need to have, and I wish Ministers to raise. would learn from that. We read in the small print of the Office for Budget Chapter 4 deals with annuities and pensions. Obviously, Responsibility’s report that accompanied the Budget as we have said, in general those annuity changes are to that in 2013-14, for the third year running, the bank be welcomed. Annuities are an out-dated product and levy is projected to raise only £2.3 billion, which falls they failed too many pensioners, but it is important to short yet again. The combined shortfall from the past reiterate the tests that we have. What sort of advice or three years is now a very significant £1.8 billion. We comprehensive guidance will be put in place for those could pay the salaries of 60,000 nurses with that sum. reaching retirement and potentially having to make calculations of income perhaps over a third of their lifetime to come, and what will happen to the annuities Mark Field rose— market for those who do wish to purchase such a product to have a steady stream of income in perpetuity? Chris Leslie: It is a very significant sum of money, and I am sure that the hon. Gentleman will have something Mr Kevan Jones: Does my hon. Friend also think that to say about that. the Government should publish their modelling on the proposal to see what effect it will have, not only on Mark Field: I certainly do. The hon. Gentleman must the annuities market but on the cost to the taxpayer in also recognise the importance of banks lending into the the long term, in terms of matters such as housing real economy, particularly as the recovery takes hold. benefit and future care costs? Producing that modelling Does he not recognise that if we are to ensure that and making it transparent for all would allow people to banks are properly capitalised again, repeated demands see whether the policy will have a long-term implication for an ever-larger banking levy—it is already the largest for the taxpayer. it has ever been, even before 2010—could be diametrically opposed to the long-term interests of the British economy? Chris Leslie: It is vital that we have serious consultation In other words, it could hinder efforts to get the banks on those measures. We support flexibility in principle, lending again. but the changes cannot be made without taking into account the wider implications, so it is important that Chris Leslie: Of course the banking sector is very we have that level of information and analysis in important. It has been dysfunctional for a prolonged the Treasury projections. I do not know whether the period. Net lending to business has fallen consistently Government were motivated by the desire to benefit the throughout this Government’s time in office. But I have population more broadly or by the short-term opportunity, to tell the hon. Gentleman that when the Treasury said following the annuities changes, to bring in a vast that the levy would raise £2.5 billion, it should have got amount of tax revenue from pensioners much earlier that money in. All our constituents are paying more in 763 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 764 tax and have lost out significantly because that money While we are on the financial services sector, let us has not been forthcoming from the banks, which after look at what the Government are doing in clause 107, all owe a little bit back to the taxpayer for the bail-out which relates to stamp duty reserve tax. My hon. Friends that followed their reckless lending decisions in previous might begin to wonder what that is all about, especially years. when we say that it is known as the schedule 19 charge, The very least we should do is ensure that we have a which refers to the 1999 Finance Bill. Many people functioning bank levy that brings in the expected sums. think, “Oh well, we’ll see what comes of these taxes.” We would ensure that it raises a further £800 million. But the schedule 19 charge, set out in clause 107 of this We would use that money to expand free child care Bill, seeks—this is the priority of these Conservative places for working parents of three and four-years olds and crypto-Conservative Members—to give a tax cut of by extending free nursery care from 15 to 25 hours a £145 million to the investment management industry by week. That would also be a good way of helping parents abolishing stamp duty reserve tax. At the same time, my to get back into the labour market and to get the jobs hon. Friends’ constituents are having to cope with the they need. A 15-hour arrangement—three hours a day—for bedroom tax, extra council tax charges and the VAT child care does not give a parent looking after a youngster increase. Despite the hardships they are facing, the the opportunity to get into work, but 25 hours a week priority of the Chief Secretary and the Exchequer Secretary would make a significant difference. We could do that is to give away £145 million by abolishing stamp duty through a reasonable and modest change to the bank reserve tax. I know that they have been lobbied heavily levy. on that. We will oppose that change, because we think that the Government should be using that resource to help Jacob Rees-Mogg: Following the point made by my scrap the bedroom tax, if indeed it is raising any money—I hon. Friend the Member for Cities of London and have my doubts about that. The National Housing Westminster (Mark Field), does he recognise that an Federation states that it might well be costing more £800 million additional bank levy would reduce the than the Government planned. We certainly should not ability of the banks to lend into the real economy by be giving away that money, especially at a time when the between £8 billion and £12 billion? investment management industry, which holds £5.4 trillion in collective funds, increased its holdings by about 7% Chris Leslie: I disagree with the hon. Gentleman on in 2013. I do not think that £145 million is an unreasonable that point, not least because the shortfall in the amount sum to ask from a sector that has been doing very well the Treasury said it would raise from the levy has been in recent years. We should be making sure that we so much larger than £800 million. I think that he needs pursue a fair policy and so will oppose that clause. to speak with Ministers. If he disagrees with £2.5 billion, We then come to the Bill’s tax avoidance measures. he needs to tell them now. The Exchequer Secretary is in We know that the Government have a bad record on the Chamber, because he is the one—unbelievably—who that—[Interruption.] Well, they do. The oh-so-successful was responsible for designing the bank levy. He must be Exchequer Secretary, who cannot even manage to get massively embarrassed by its total failure. Why has it the amounts of money he promised from the banks, raised so little? How does he explain the shortfall? I will cannot manage to get from the Swiss the £5 billion he give way to him if he wishes to offer an explanation. promises through the Swiss tax deal. The Chief Secretary stood up a moment ago and said that he would get only The Exchequer Secretary to the Treasury (Mr David £1.7 billion. We had a deal with the Lichtenstein Gauke) indicated dissent. Government, which we projected would bring in £2 billion; in fact, it has brought in £2.5 billion. When we have tax Charlie Elphicke rose— deals with tax havens, they work. However, when the Exchequer Secretary gets his fingers on these things, it is amazing how it all goes wrong—it is his reverse Chris Leslie: No, nothing is forthcoming. Perhaps the Midas touch. hon. Member for Dover (Charlie Elphicke) can help us The Government have fallen into bad habits in pencilling on that. into the Red Book projections of revenues from the avoidance measures that involve what the OBR calls Charlie Elphicke: The hon. Gentleman referred to the particularly uncertain assumptions. The Government article in The Daily Telegraph but did not explain it fully are, of course, quick to spend the projected money; to the House. It shows that the Chancellor is keen to see Paul Johnson from the Institute for Fiscal Studies calls foreign banks paying a fair share of the levy. It is not such moves the Chancellor’s manoeuvres, always relying about letting off the major clearers; it is about ensuring on revenues that are by nature uncertain. It is important that all banks in the UK pay a fair share. Surely that is that we scrutinise whether the supposed tax avoidance right. deals will deliver what the Government say. Rather than the measures in the Bill, we need action Chris Leslie: That is a very interesting explanation. to deliver starter jobs, guaranteed for the long-term There is a shift in policy, which is to let certain banks off unemployed. The number of young people out of work the hook when it comes to the bank levy. Perhaps the for a year or more has doubled and we need compulsory hon. Gentleman is right and that is a strategy. I have starter jobs for those who have suffered unemployment, given the Minister an opportunity to explain what which is a scourge not just on society but on their career exactly the Government’s plan is, but he will not put it prospects. We need action on child care. Free child care on the record. We will have to explore that in more should be extended from 15 to 25 hours, paid for depth in Committee. through a proper collection of the bank levy. 765 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 766

[Chris Leslie] Instead, the Exchequer Secretary and Chief Secretary have convinced themselves that cutting public services We need a help to build scheme to counter-balance and raising taxes have helped economic growth. They the Help to Buy scheme. There is a serious risk—as the believe their own propaganda about expansionary fiscal Chief Secretary knows, even the Governor of the Bank contraction, which was the philosophy of the right in of England has concerns about these things—of a British politics. It used to be the opposite of the Liberal lop-sided recovery unless we match the boosting of Democrats’ view, but of course they have now bought demand with boosting of supply. A help to build scheme into the concept. particularly focused on ensuring that small and medium- sized construction companies can do better is one way to make a big difference. David Rutley (Macclesfield) (Con): The hon. Gentleman does not want to take this point from Government Front Benchers, but I have just been to the annual Guy Opperman: Is the hon. Gentleman aware that in conference of the British Chambers of Commerce and the north-east, the Help to Buy scheme is absolutely it is absolutely delighted by the Bill and the Budget, transforming the housing market? In Humbles Wood in which will help its businesses across the country. Will Prudhoe, a housing development in my area, 90% of the hon. Gentleman join it in welcoming the Bill? new purchases have been through Help to Buy. That must be good news that the hon. Gentleman wants to welcome. Chris Leslie: No, because the Bill could be significantly improved. I have given a number of ways in which it Chris Leslie: We do not oppose the Help to Buy should be doing more for small businesses, for fairness scheme unless it is not accompanied by a help to build in society and for the hon. Gentleman’s constituents. I scheme. The supply of housing is key. Housing policy think he will pay the price when the election arrives. He must revolve around affordability. We now have the is under the impression that fiscal contraction is how lowest level of house building since the 1920s; the growth materialises, but he needs to realise that growth Government cannot just turn a blind eye to that problem. is coming despite, not because of, the Government. I Affordability has to be at the heart of our approach. It am afraid that they have still not learned that lesson. is all very well helping people on to ever higher mortgages The Conservatives and Liberal Democrats are desperate chasing ever higher prices, but unless something is done for people not to spot their broken promise on borrowing to supply new buildings, we will not deal with the and the deficit. Three years of economic stagnation will problem of affordability. leave the next Government with a budget deficit of £75 billion. It is astonishing that in his Budget speech, Mr Kevan Jones: I am not sure what nirvana the hon. the Chancellor had the nerve to stand there and say: Member for Hexham (Guy Opperman) lives in if he “as a nation we are getting on top of our debts”—[Official thinks that the housing market in the north-east is Report, 19 March 2014; Vol. 577, c. 781.] booming. Average house prices in the north-east are still £5,000 lower than in 2008; that compares to an The Government have added a third to the national increase of about £77,000 in London. The hon. Gentleman debt, which now stands at £1.2 trillion. What a nerve also fails to recognise that 16% of people in the north-east the Chancellor showed! He promised to stop adding to are still in negative equity. The idea that somehow the the national debt, but has borrowed more in the past housing market in the north-east is booming is wrong. four years than the last Government did in 13 years. We have a two-speed Britain—a booming south-east The Bill is bereft of the measures that we need to and London, and a stagnating north. make sure that the recovery is sustained and shared by all. It has nothing new to tackle long-term youth Chris Leslie: For all the Government’s talk of a unemployment, nothing to secure an energy price freeze balanced, sustainable recovery, we see no action. Most and nothing to bring forward real help now for working of our constituents and most businesses would recognise parents who need extended child care. It has nothing that supply and demand have to be part of the picture. new on infrastructure investment, which is still lagging Everybody recognises that except, it seems, for the behind, and nothing to address the wages crisis that Chancellor and Chief Secretary, who do not recognise leaves the typical person £1,600 worse off than in 2010. the fundamental problem in their approach. The Bill is not just a missed opportunity; it is so wide of There needed to be tough decisions, such as the the mark that it misses the point altogether. It is designed 50p rate, in the Bill to make sure that there was fairness to help Ministers limp from here to election day. It falls in dealing with the deficit and that we tackled the short and is not good enough. Government’s failure to keep their promise about balancing We would urge Ministers to go back to the drawing the books. That has not come to fruition. We need to board, but it is increasingly clear that they do not even help with business rates; we should be cutting them have a drawing board. I urge my hon. Friends to support rather than simply focusing help on 2% of companies. the reasoned amendment. We will try our hardest to The Government are not ensuring a sustainable and secure improvements to the Bill in Committee. This is a balanced recovery. Consumers are having to dip into minor Finance Bill from a Government out of ideas. their savings at an alarming and increasing rate. The They delayed the Queen’s Speech because they do not OBR even predicts that growth may well slow in future, have enough to put in it. The Bill should address the when those savings run out. Exports are not predicted cost of living pressures faced by the majority and it to contribute a thing to the economy for the next five should set a long-term ambition for a recovery built to years and nothing in the Budget tackles the country’s last and felt by all. The country deserves a better productivity crisis that has emerged in recent years. Finance Bill than this. 767 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 768

2.58 pm In the months ahead, the Chancellor might perhaps Mark Field (Cities of London and Westminster) (Con): borrow some tricks from the Bank of England. While It is usually a pleasure to joust with the hon. Member the notion of forward guidance has hitherto proved for Nottingham East (Chris Leslie), but his comments something of a mixed success for the Governor of the were unremittingly negative. It is amazing that he contrived Bank of England, Mark Carney, it might prove a useful a speech lasting no fewer than 46 minutes about a tool for the Treasury. Unlike some of my hon. Friends, I Finance Bill that supposedly had so little in it. have always doubted the wisdom of promising instant and substantial tax cuts, as that puts in jeopardy our For almost the past four years, the British electorate central mission of restoring order in the public finances. have, perhaps grudgingly at times, recognised that the However, there is no doubt that reducing the tax burden coalition’s avowed economic plan—the elimination of should always be part of a Conservative offering, not the structural deficit in the course of this Parliament—has least as we approach a general election. I hope that in a been the right path in response to our grisly economic future autumn statement the Chancellor will offer his inheritance. own brand of forward guidance, giving a clear signal Key to the plan was consistent growth. The Office for that when progress has been made on reducing the Budget Responsibility’s predicted compound growth of deficit, and that progress breaks past a certain point, a 2.7% to 2.9% for the duration of the Parliament accounted series of tax cuts will kick in. In that way, the electorate for more than half the deficit reduction programme. As will know full well that while our priority is, and must the hon. Gentleman rightly pointed out, that has not been remain, stability, our ultimate aim will be a low-tax, achieved, but the international capital markets have competitive economy. maintained their confidence in the coalition despite its The Opposition’s messaging over the past six months, first three years having being characterised by somewhat as in the course of this debate, has blended naive sluggish growth. Fears that excessive borrowing on the populism with flagrant opportunism. Their appeal has scale that became necessary between 2010 and 2013 would rested not on their practicality but on their exploitation lead to higher interest rates have proved entirely unfounded. of a deep sense of unease among many in the electorate that the current system does not deliver for them. The Mr Kevan Jones: I know that 2010 seems a long time Government’s response has at times been too erratic ago, but does the hon. Gentleman remember that when and confusing, and has lent greater weight to policies this Government came to office the economy was growing that should rightly be dismissed as dangerous and and we went into decline only because of the sucking unworkable. What voters need from us, and what this out of demand and investment in the economy during Finance Bill offers, is a sense of consistency and simplicity. their first two years? Rather than blowing us off course, the Bill implements Mark Field: The hon. Gentleman will be well aware a Budget that has been designed to cement our position that it is in the power of any Chancellor to orchestrate as a calm and rational team slowly and patiently getting something of a pre-election boom. The VAT reduction the UK economy back on track and the public finances certainly assisted in that, such that there were two or under control. Substantial or radical reductions in tax three quarters of unsustainable growth in the period should sensibly come only when that mission has been from the end of 2009 to 2010, as became apparent fairly accomplished. Perhaps understandably, this sober message quickly. was not the headline-grabbing element of the Budget. Rightly, the proposed liberation of pensions will now be We have seen some very significant growth. The first subject to extensive consultation. These ground-breaking glimpses that came a little over a year ago in spring 2013 reforms will need to be assessed to ensure that any have turned into healthy, consistent growth that has in potential unintended consequences are properly analysed many ways surprised even economic experts. This has before any new pensions regime is put in place. been maintained, alongside a very strong performance in employment, and barring unforeseen economic shocks I want to put on record some specific concerns about it should continue for the rest of this year and beyond. the tax avoidance regime that may differ from those After the frenzy of Labour’s energy price freeze promise, raised by the hon. Member for Nottingham East. I the early new year period has allowed the Government addressed these last Friday in an article in The Daily to regain their footing and reset the important message Telegraph about the operation of Her Majesty’s Revenue that we are following a long-term economic plan that and Customs’ disclosure of tax avoidance schemes— will benefit hard-working people. If, in the coming DOTAS—regime. I have been struck by the number of months, we can overlay this sober foundation with a financial advisers and investors, large and small, from sense of upbeat optimism and positivity about our across the country who read my piece and have responded nation, we will have a solid base from which to bat away over the past few days by outlining their own cases of unremittingly negative political attacks of the kind that particular concern. we heard earlier. To complement consistent messaging Last year, for the first time, aggregate investment in on the deficit, we must also give the electorate a feeling UK-based film production topped £1 billion. This has of hope about life under a future Conservative Government. been aided by a crucial tax break that has attracted Nevertheless, the Treasury has been right to be wary. A huge sums of private cash into the British film industry, giveaway Budget implemented by this Finance Bill would which we can be proud of and which is recognised on have sent out entirely the wrong signals. If money were the global stage with the success of many British films found for substantial tax cuts, our opponents would at the Oscars. In last month’s Budget, the Chancellor question the need for further reductions in the welfare introduced a theatre tax break to match similar provisions budget, and this at a time when the Institute for Fiscal for high-end TV, film, and televised animation. I warmly Studies calculates that we are only two fifths of the way welcome this energy from the Government on behalf of through the total planned spending cuts. our crucial creative industries. As well as being home to 769 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 770

[Mark Field] matter of urgency. In their case, it is HMRC that is stalling progress. Legitimate investors understand the the much-maligned banking industry, my constituency need to deal quickly with the tens of thousands of is also the traditional home of many of our great, outstanding mass-marketed avoidance cases currently globally competitive creative sectors in Soho and Covent clogging up the courts. They simply propose an exception Garden. I campaigned for some three years to get the in the case of existing DOTAS-registered schemes whose animation tax credit that was successfully announced in promoters have taken all reasonable measures to enable the 2012 Budget and agreed on in all parts of the a dispute to be brought before the statutory appeals House. tribunal. Last month, however, I heard a tale of woe from a It strikes me as a shocking breach of faith that the group of experienced private investors who have found Government are now attempting to impose a requirement themselves squeezed awkwardly between the coalition’s on such individuals to pay a disputed up-front sum ambitions for the creative industries and its other when it is an agent of the state—in this case, HMRC—that understandable priority—a clampdown on tax avoidance. is deliberately and actively delaying the sitting of the Their experience should be a warning sign to any investor tribunal. Worse still, I fear, is the general message being who has sought to engage in an open and transparent sent to other private investors, who stand to be deterred relationship with HMRC. It should also give Treasury from any future investment in the UK film industry. Ministers pause for thought—not least the Exchequer DOTAS was designed with the best will in mind— Secretary, who is in his place, as he aggressively pursues something you may well remember, Madam Deputy the Government’s anti-avoidance agenda in the months Speaker, as the system came into play under a previous ahead. Some years ago, the group who came to see me Administration. It was designed, rightly, to promote had approached HMRC with their model for private openness and transparency in investors’ relationships investment in the UK creative industries. After extensive with HMRC—in principle, a welcome step. However, discussion on its structure, they were not only given the DOTAS is now in effect helping to produce retrospective green light but told that their vehicle was exactly the legislation, with DOTAS declarations being used as a sort of thing that the Government were envisaging. On stick with which to beat legitimate investors who never the basis of this understanding, the group proceeded to planned on having liquid assets to meet disputed liabilities. invest more than £1 billion of risk capital into the I fear that augurs ill for the Government’s broader, British film industry, leading to the production of more much vaunted anti-avoidance plans, as set out in the than 60 home-grown films. Bill, and their overarching plan to make Britain entirely Given the discussions they had had, HMRC considered open for business. these legitimate investors to be firmly “inside the tent”, It is useful at this juncture to highlight some of the but as a precautionary measure they elected to place letters I have received in response to my article of last themselves on the DOTAS register. Because tax avoidance Friday. One constituent, a small-scale investor in the measures are now so widely drawn, it has been common scheme, advised me: practice to err on the side of caution by signing up to “HMRC has previously offered us full relief on our cash HMRC initiatives of this sort. The investors thought contributions if we forgo relief on the loan element. We haven’t nothing more of the DOTAS registration until a flurry agreed to this. Now they plan to make us pay all the tax in the of high-profile scandals, or so-called scandals, came to autumn. Many will feel pressured to settle on the basis of HMRC’s light whereby film investment vehicles had been used by earlier offer as that will reduce the cash to be found by some 37%. celebrities to slash their tax bills. Rather than sifting This is harassment, which if conducted by a loan shark would through the egregious examples of so-called aggressive rightly have you and your colleagues legislating. HMRC has no case and is relying on intimidation and extortion instead.” avoidance through legitimate investment vehicles, HMRC threw a blanket of suspicion on to any DOTAS-registered A correspondent from further afield wrote: scheme. Keen to establish their vehicle’s legitimacy as “I am an ordinary, law abiding person who has never knowingly swiftly as possible, and exhausted by HMRC’s consistent cheated anyone, least of all HMRC! But their endless delays and mismanagement of their case, as they see it, the investors apparent moving of the goal posts make me feel almost like a elected to put their scheme before an independent tax criminal.” tribunal. Another wrote: Currently, if the UK tax authorities wish to challenge “The cries of protest highlighting this radical shift in power the legitimacy of a DOTAS-registered scheme in court, seem to have fallen on deaf ears of government officials. I represent the taxpayer is permitted to hold on to the disputed tax hundreds, if not thousands of similar professionals that are on the brink of ruin as a result of the changing of the goal posts by while the case is being resolved. This was discussed HMRC whose unchecked powers seem to be morphing.” earlier by the Chief Secretary. Because the Government believe that this incentivises scheme promoters to sit That concern was shared by many others. There is back and delay resolution, they now propose to extend concern that the decision process lies solely in the hands the accelerated payments measures to existing DOTAS- of a designated officer—some relatively anonymous registered schemes. This means that disputed tax will be HMRC official, acting as judge and jury, with no paid up front to HMRC and returned only if a scheme independent or proper safeguards. That does not seem is subsequently found to be legitimate. However—this is right, as pressures on individuals to act in the best where the Government need to rethink their understandable interests of a Department that is failing to collect taxes enthusiasm for clamping down on tax avoidance—no as quickly as it would like will be immense. exception is proposed in cases where taxpayers have I know we discussed this matter in the House in the demonstrably not sat back and delayed as long as context of retrospective legislation last year, but we possible. My investor constituents are desperate to get need to give serious thought as to how Parliament can their dispute settled by an independent arbiter as a properly control such Executive power. There seem to 771 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 772 be no checks or balances on a Government Department, reason, I welcome the measures on investment allowances and that does not seem the right way to address our tax in the Bill. However, it is a U-turn from previous cuts to policy. allowances and, for all his refusal to acknowledge it, the In my view, if the Treasury wishes actively to encourage Chief Secretary must accept that it was a mistake to investment via additional tax credits, we must be assured have made those cuts in the first place. None the less, that legitimate investors’ previously agreed, transparent the measures are to be welcomed. vehicles are not at some point going to be subject to The automotive industry continues to show great unplanned for, up-front tax liabilities in the event of a strength, providing high-skilled jobs and investment. sudden change to the rules by HMRC. As the Exchequer However, it is important to acknowledge that, particularly Secretary will know, I have consistently pressed for over the past decade, growth has come about through Government efforts on tax evasion to go hand in glove active Government involvement, by working with Nissan with the creation of a comprehensive pre-clearance and the work force there. Over the past decade Nissan regime. That would allow firms and their tax advisers to has rightly enjoyed many accolades. At times, sadly, road-test proposed taxation schemes with HMRC officials. jobs were lost at the plant, but we now enjoy the largest Ideally, if that were to work efficiently, no new scheme work force there on record, which is of course to be would be permitted to be marketed until such time as welcomed. approval had been given. I am sorry to speak on a slightly negative note, Mr Jim Cunningham (Coventry South) (Lab): My because as I have said I support much of the Bill, but it hon. Friend mentions the automobile industry. I am is important to put on record some of the concerns sure she would appreciate that the previous Labour about how the anti-avoidance process is working. Alarm Government did a lot to encourage Tata to invest in bells should be ringing throughout Parliament as we Jaguar Land Rover, which is one reason why we are preside over this unprecedented transfer of power to starting to get great success in the manufacturing industries, HMRC. This agency of the state is being empowered including in her region. not only to apply the law but to a large extent to rewrite it. In summing up, will the Minister provide assurances Bridget Phillipson: I agree entirely with my hon. on the steps that he is putting in place to ensure that Friend’s point. I was about to come on to look at the incorrect seizures are avoided and that hardship will not Labour Government’s record on the automotive industry follow as a consequence? and on industrial strategy. It is simply not right to begin The Government’s aims to encourage investment in looking at the sector only from 2010. A lot of work British industry and to clamp down on aggressive tax went in, over a long period of time, with the work force avoidance and evasion should not be incompatible. I and the trade unions as well as through Government, to trust that during the full consideration of the Bill we make sure there were the right skills and the investment will further highlight some of those unprecedented needed for the industry to compete in the future. The powers to rewrite the laws and ensure that Parliament Labour Government took that seriously; I hope this and, above all, the Treasury take a step back, so that we Government will take that forward. have a system that, as far as possible, promotes the sort of investment that all of us crave, not just in the creative Mr Kevan Jones: I agree with my hon. Friend about industries but throughout the UK economy. the long-term strategy that was put in place. Also, when help was needed at a crucial time in the downturn, the 3.15 pm vehicle scrappage scheme helped work forces not only at Nissan but in the constituency of my hon. Friend the Bridget Phillipson (Houghton and Sunderland South) Member for Coventry South (Mr Cunningham). It may (Lab): I am grateful for the opportunity to speak in this have been a short-term stimulus, as the hon. Member debate. I want to begin by focusing my remarks on the for Cities of London and Westminster (Mark Field) north-east economy: the challenges that we face and said, but it certainly helped at that time. why my constituents will struggle to recognise the picture presented earlier by the Chief Secretary to the Treasury Bridget Phillipson: My hon. Friend makes the point as he set out the measures in the Finance Bill. that I was just about to come to, about the car scrappage The need to secure a stronger, more balanced economic scheme. There was also the enterprise finance guarantee. recovery is pressing. My continued concern is that, During the downturn that was crucial in keeping people unless the Government are willing to act to address the in work and keeping the plant productive. My hon. imbalance, the north-east will continue to be left behind. Friend has no doubt visited Nissan and will know that The north-east economy has many strengths and is an it is crucial for a plant to keep staff numbers up, to be asset for the United Kingdom. We are one of the able to compete and to attract contracts. Nissan is very leading export regions in the UK, and in 2011, 2012 and competitive internally, and Nissan in Sunderland continues 2013 we were the only English region to achieve a to have to compete with plants in Europe and across the positive balance of trade. world. It is crucial to maintain core staffing levels so A large contributor to that surplus is Nissan. Its that when contracts come up internally, we can bid for plant on Wearside is one of the world’s most productive, them in Sunderland. The car scrappage scheme was producing a car every 60 seconds. Nissan’s continued crucial in making sure that we kept people in work at success and the skill and determination of the work the plant and in the supply chain. force are sources of immense pride to us all. We have Ministers cannot afford to be complacent about the long been a region with an identity rooted in manufacturing degree of success we have been enjoying and about and engineering, and with Nissan, Hitachi and many ensuring that it is maintained. Continued success is not others we will show just what we can achieve. For that inevitable. A constant concern that is raised with me is 773 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 774

[Bridget Phillipson] make decisions about where investment will come from in the years ahead. The prospect of an in/out referendum that talk of Britain leaving the European Union and all hanging over our heads until 2017 and the constant that would follow from it creates massive risk and discussion about it are simply not helpful when it comes uncertainty about investment in Nissan. Nissan has to jobs and investment in the north-east. rightly warned against that and Government Members The most recent unemployment figures reveal that should be mindful of the fact that continuing to engage the north-east still has the highest unemployment rate in a Back-Bench debate about the future of Britain in in the country, standing at 9.5%. It is clear that the the EU could have damaging consequences for areas recovery has yet to deliver fully for my area. The picture such as mine, which rely so heavily on our ability to of youth unemployment is even more troubling. Across export to Europe. the three parliamentary constituencies covering Sunderland, A report published just yesterday outlined that the nearly 2,500 young people aged 18 to 24 have been out north-east and the midlands would be hardest hit by of work for more than 12 months. In my constituency, Britain leaving the European Union. That is no doubt that represents an increase of 1,650% in four years. linked to the automotive industry in both regions and Our region has seen in the past the economic and our ability to export to that single market. social damage caused by long-term unemployment, destroying communities and draining hope from countless Mr Kevan Jones: I concur with my hon. Friend, but it good people and their families. Ministers, however, is not just the automotive industry in the north-east appear to be complacent about the scale of the problem. that would be affected. Investment in Komatsu, which They should act now and implement Labour’s plan for employs a lot of people in my constituency, and the a jobs guarantee for all young people who have been out new, welcome investment in Hitachi would also be of work for more than a year, because it is clear that the affected. The chemical industry on the Tees also relies Youth Contract and the Work programme are failing. heavily on European markets. This Bill is another missed opportunity to tackle the scourge of youth unemployment and long-term unemployment Bridget Phillipson: That is absolutely the case. One of in constituencies such as mine. the ways in which Sunderland has diversified its economy I speak to many people in my constituency who are has been to move towards software. The number of new desperate to work and who are applying for job after small software firm start-ups is among the highest in job and getting nowhere. They do not even hear anything the UK. Many of them are looking to expand into and or get an interview—they make no progress. It is hard open offices in Europe and I have no doubt that they do to underestimate the despair that that causes among not find helpful the constant discussion we are having young people who are without hope for the future and about Britain’s role in Europe. They want to expand not sure where things will take them. One man who what they export and their role in Europe by opening came to my constituency surgery last week told me that offices there. They do not want to have a pointless he faces the prospect of getting up and looking for work debate about Britain’s role; they just want to get on, every day, but he has been doing it for too many years create jobs, invest in our region and continue to diversify now. He is desperate to work and has a lot to offer, but our economy. I have no doubt that my hon. Friend, like it is a highly competitive jobs market in which lots of me, will recognise the fact that there was a big shift in highly skilled people who have lost their jobs in the the north-east economy in the 1980s and ’90s. We have public sector are able to compete and are chasing too transformed our industries, although that has not been few jobs. The Government must address the matter entirely of our own choosing—we had to transform urgently. them. In fact, given the transition that had to take place, we have been remarkably successful. The fact that the software sector in Sunderland continues to grow, Sheila Gilmore: Does my hon. Friend recall, like I do, including in Rainton Bridge in my constituency, shows that when the Government introduced their Work what we are capable of in the north-east, but we need programme, they said that it would be the best ever the Government to work with us to achieve it. employment service and that it was meant to help long-term unemployed people? Does she agree that that Mr Jim Cunningham: I thank my hon. Friend for group does not seem to have received the necessary giving way again. On the point about companies investing help? in this country, I am sure she will agree that a lot of companies, such as Nissan and Jaguar Land Rover, Bridget Phillipson: Like my hon. Friend, a lot of the initially invested in this country because we are in correspondence I receive and what people who visit my Europe. If the Government continue to undermine that surgery tell me is that the Work programme is not confidence, they will create some major problems in the delivering. They are not getting the help they need from west midlands and, as my hon. Friend has indicated, in it and they are not getting back to work. In an area such the north-east. as mine, where long-term unemployment and youth unemployment remain a major concern, it is simply Bridget Phillipson: We should not underestimate the scandalous that the Government are not taking the scale of the challenge that companies such as Nissan action necessary to get people back to work. These face. It is incredibly productive and has a wonderful people are desperate to work and they want to work. work force, and the Qashqai, which is produced on The situation is not a great deal better for those in Wearside, was recently voted car of the year. There is so work. They are struggling to make ends meet with the much good news in terms of Nissan and other big rising cost of child care, ever increasing energy bills and companies in the north-east. However, companies such falling wages. Parliamentary questions have revealed as Nissan require long-term stability and the ability to that, since 2010, men living and working in my area 775 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 776 have suffered a 10% cut in real-terms pay—in other relates to the provision of advice and information to words, a cut of £49 a week. Women have seen a drop in people who choose an alternative to the previous system their wages, too—they now receive £26 less a week. whereby, for good and bad, the decision was handled by I recently visited the Loaves and Fishes food and an insurance company through the annuity system. bank in Easington Lane in my constituency. It opened Something has been published about Government money last September and is one of many new food banks that being spent on helping to provide advice or information, have, unfortunately, opened in Sunderland. Of course, I but my fear is that that will turn out to be a call centre pay tribute to the volunteers and local community who somewhere, with people who may be trained only in a are coming together to take action. We have always limited way having to advise people on the biggest been an area that comes together and responds to need. decision of their lives and finding it very difficult to The compassion and drive of the volunteers is evident, do so. but so too is their sadness—sadness that these food Regulations were brought in by the Financial Services banks need to exist at all. I am proud of their dedicated Authority for the smaller independent financial advisers service, but it is a source of immense regret that local who, for better or for worse, provided such a function people are increasingly being forced to turn to food for people retiring with small pension pots. A very open banks to survive, including many people in work, as the policy by Adair Turner and Hector Sants, part of the volunteers told me. previous administration at the FSA, in the form of new One of the biggest barriers that parents—particularly regulations relating to the retail distribution review and mothers—face is accessing child care when returning to the disclosure fees, has effectively eradicated the very work. Affordable and accessible child care will support low-level IFAs—those dealing with very small pension our economy to grow, allow parents to work and give pots—simply because it was impossible for them to many children the best start in life, particularly those charge enough money to be able to give proper advice. I from the most disadvantaged backgrounds. The Bill’s understand that, because it is just economics, but my measures, however, will not even kick in until the next fear is that no one or no company has adequately Parliament. They do nothing to help parents now. They replaced that kind of advice, let alone in relation to also help fewer people than previously announced and what the Government are about to do. come after £15 billion-worth of cuts to support for I hope that the Exchequer Secretary and his colleagues children and families. will give that some attention. I know some money has When in government, we did much to address that been allocated, but for most people it is the most serious problem. In fact, we were the first Government to decision they will ever take, except possibly when buying accept that, rather than child care being a private family a house. There must be a mechanism, whether private matter, the Government had a role to play in ensuring or Government-funded, to provide good advice. For that places were available. We devoted particular attention wealthier people, there is a very sophisticated wealth to supporting single parents back to work, which was management business—IFAs are very good, and I am welcomed in my constituency and did much to encourage sure that different firms around the country do an people back into work. excellent job—but given that the average pension pot is probably about £20,000 to £25,000, it is a very important Just like then, we now also have clear plans to help decision for people who have saved into it all their lives. parents with 25 hours a week free child care for working A lot of thought must go into how such people are parents of three and four-year-olds. That will be of real informed, although I accept that, for regulatory reasons, help to parents, who need action now. It is disappointing there is a big difference between information and advice. that the Government measures offer no help to parents struggling to work and pay for child care. Mark Field: My hon. Friend makes a very important In the north-east, we need a Government who work point that is worth stressing. In the midst of more and with us, recognising both the potential and the opportunities more regulation, standardisation and almost a utilisation that exist, as well as the challenges we face. My constituents, of all facets of the financial services industry, we are like so many working people across the country, need a moving away from the very personalised advice that the Government who are on their side, tackling the issues of sort of clients to whom he refers so desperately require. falling wages, getting our young people back to work and taking action now to help parents struggling with Richard Harrington: I thank my hon. Friend, who child care costs. characteristically makes a very good point. The problem Economic recovery must be sustained and balanced, is that to give the kind of detailed personalised advice benefiting all regions of the country with economic that people want, the fee has to be at a certain level to recovery for all, but this Bill simply does not do enough reward professionals for doing the job, but smaller to address that. pension pots make that very difficult. That is nothing to do with regulation; it is simply about being able to 3.28 pm charge the correct amount for their time. I hope that there will be alternative systems, although they may not Richard Harrington (Watford) (Con): Rather than try perhaps give quite the bespoke advice that is available to compete with the shadow Chief Secretary’s negative for people with larger pots. In other fields, such as attitude towards the Bill and his extended romp through accountancy, there are ways in which people can get it, I feel it is my role—my position is somewhat more good advice without having to spend the vast amounts humble than his—to stick to two or three brief points of money available to those with larger pots. and ask the Government and him to think about them. My second point about changes in pensions legislation Although I applaud the Bill’s pension clauses, I think is just a thought. Many billions of pounds will become that two particular issues should be addressed in addition available that would have been dealt with directly in the to what was said in the Budget statement. The first insurance market through the annuity system. Have the 777 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 778

[Richard Harrington] I am very pleased that the measures taken by this Government have helped somebody to take that step. Government given any thought to providing a facility There have been different schemes relating to national involving national savings in which the Government or insurance, and in particular schemes that have made it an organisation acting on their behalf deal with it on a very reasonable for small companies to take on apprentices, managed fund basis? There is a similar system in Australia who are given a tailor-made programme. To get to and New Zealand, where there is a kind of sovereign employees Nos. 1, 2 and 3—after employing only oneself—is wealth fund that comes from people’s pensions pot, the biggest step for a small business. From the point of accrued together, with the necessary caveats about risk, view of the economy, in reducing expenditure on welfare, a portfolio approach and all such matters. The Government while people benefit from earning money themselves thereby take advantage of the savings system, so that and eventually pay tax, that step is most critical. Many people can retire with a very good, solid and Government- of the measures in this Budget and in previous Budgets guaranteed choice—of different types of products and will help with that. risks—about what to do with their money. It would be In the end, most people set up businesses for one very simple, with perhaps one or two choices; it obviously reason. It may be a noble reason or a selfish reason, could not compete with the great panoply of schemes of depending on one’s perspective, but people set up businesses the large fund management companies. It would be to make money for themselves and their family. When I simple so that people could understand it, and I hope speak to students in my constituency, I always commend that it would provide a vehicle for funds that are safe those who want to be teachers, social workers and and give a good return for the public, while also providing doctors because when they graduate, they will give their the Government with extra funds, as happens with lives to help other people in society. However, to those National Savings & Investments. people who put their hands up and say that they want to On the Budget generally, which I support fully, my become rich, live in a big house and get a Ferrari—there fear is that this country still lacks a business culture. are a few of them—I say that, provided that they pay Both this Government and the previous one quite rightly their taxes and employ people, they will benefit society focused on small and medium-sized enterprises, businesses just as much as the first group of people. I really believe and apprenticeships, with different schemes and systems that. I believe in everything that the Government have to try to help them. When I speak at schools in my done in the Budget and the Finance Bill to help people constituency—as for all hon. Members, they are a regular to do that. feature in my diary—it is interesting to talk to young people about what they want in life, yet very few of the The tax cut for millionaires is a mantra for the brighter ones seem to desire to go into a business shadow Chief Secretary. I am sure he is having his cup environment. Those who do have such a desire tend to of tea and saying the same thing to anyone around the be interested in graduate schemes with larger multinational table who cares to ask. However, I do not believe that companies or the professions. There is nothing wrong what he says holds water, because we want people to with that—some of them, heaven forbid, want to be become millionaires. I want my constituents to want to politicians—but these are the very people whose families become millionaires. By the way, on the first million, often have small businesses in my constituency, and they will pay about half a million in tax and will there are 1,600 businesses in Watford that employ between hopefully spend another 200 grand on the Ferrari. Can two and seven people. It seems to me that the we please let people become millionaires? The Government establishment—schools, parents and everyone else—very should help people to generate wealth and a lot of tax much look for brighter young people to go into the to support the people in this country who really need professions and find alternatives to self-employment. help. It is very hard to change that culture, but I want to commend the Government for what they have done to Mr John Redwood (Wokingham) (Con): Are not people help small businesses and to help people to start up who set up businesses performing a public service in businesses. Wenta in Watford—the Exchequer Secretary their own right? They are not just given a million may be familiar with it, because it is near his constituency pounds because they want a million pounds. They have —is an incubator for many start-up businesses. I saw to open a chemist shop and provide pharmaceuticals to several of them when I was there only a couple of weeks people or whatever. Is that not as much of a public ago, including a small business started by James service as anything else? Morgenstern in which, in arrangement with Google, people who find an image of a building on Google Earth can then see a video of its interior. He started it in Richard Harrington: My right hon. Friend makes a his bedroom and has now moved to an office at Wenta, valid point. That is another benefit. That is another way and the business will expand. in which setting up a business is a public service. To use James Morgenstern’s business as an example, Many of the things that the Government are doing his next big step is to have a first employee. I can speak involve not only the Treasury, but other Departments. I with a little authority, because many years ago—I am mentioned the pension changes, which relate to the probably about the same age as his parents or, depressingly, Department for Work and Pensions. There are also his grandparents—I was in that position. One starts a changes in skills and education. The new university business and it is all great: one does everything oneself, technical college in Watford completed on its property being up 20 hours a day, and all of that—it is a great in Colonial way today. That has been put together by pity that the shadow Chief Secretary is not in his seat at David Meller of the Meller Education Trust, who has the moment, because he would be very interested in several projects in the area, and myself. It will provide this, so perhaps I should brief him fully outside the pre-apprenticeship education for businesses in the area Chamber—and the next step is to have a first employee. that have jobs and that want trained people. 779 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 780

The UTC is sponsored by the Hilton hotel group, Richard Harrington: The hon. Gentleman is absolutely which is based in Watford. In fact, it runs the world right. There is a consensus that it is not acceptable if from Watford. Everyone in Watford thinks that they people who are on jobseeker’s allowance do not have to run the world from there, but Hilton actually does. For do anything towards getting a job. We can deal with the sake of clarity, people should understand that that that either by the Government providing a job through excludes the United States, the rest of the world being a a direct subsidy, as the Opposition suggest, or through region of the United States in many people’s perception. the current system. The important point is that such firms are thinking, “If we want skilled employees to build up our business, we Mr Kevan Jones: Will the hon. Gentleman give way? need them to be trained from quite an early age.” Hilton and Twin Technology, which is an IT company, are the Richard Harrington: If the hon. Gentleman will bear two main sponsors of the UTC. They helping to design with me, I will make a bit of progress first. the courses because they are prepared to guarantee that there will be work experience and apprenticeships for The system means that people are effectively signing people who come through the college. The Government an employment contract when they sign on—I have have helped to facilitate that through the Budget and seen such contracts, and the purpose is to get people the Finance Bill. looking for work. It is a programme of looking for work and taking up initiatives that have been derided by In the dream world of the Opposition, they say, the Opposition, such as the work experience programme, “Hey, everybody should get a job and it is guaranteed the Work programme and other things. But I have seen for a year.” No one has explained to me where those the system work. It provides a lot of jobs in my constituency. jobs will come from. I saw people working in the park as However, the principle of what the hon. Gentleman a result of the last Government’s attempt at that. People says, which is that people should not be allowed to rot were taken on for a year to help the park keeper, but the and do nothing while on jobseeker’s allowance, is right. job disappeared because it was not really a job. I am pleased that this Government have done their best to The hon. Member for Houghton and Sunderland avoid that trap. South (Bridget Phillipson) made a good point that was pertinent to her constituency, and she has met people who have applied for hundreds of jobs and been Stephen Doughty: The hon. Gentleman is giving a unsuccessful. I accept that and have heard of similar slightly confusing impression of such schemes. I have cases. I cannot compare my constituency with that of met small businesses in my constituency that have benefited my hon. Friend the Member for Cities of London and from taking on workers through the jobs growth Wales Westminster (Mark Field), or with Kensington and scheme, which they would not otherwise have done. The Chelsea, but in Watford—as the shadow Chief Secretary scheme therefore benefits the business and the person to the Treasury, who is not here, would know as he is a who is in a job, getting experience and developing frequent visitor, for which I am grateful—jobs are available. themselves. There would otherwise have been a lost I am not saying there are jobs everywhere, and it is opportunity. difficult for anyone to get a job, but I accept that in the hon. Lady’s constituency things are completely different. Richard Harrington: I respect the hon. Gentleman’s view. I described my experience of the last scheme and he has spoken of his personal experience. I am in favour Sheila Gilmore: Is the hon. Gentleman concerned of that kind of scheme. When I was very young and that the number of unemployed people remains relentlessly starting out in business, I was able to take on one person high, despite the talk about there being lots of jobs? under the old youth training scheme, which was much Surely we must try to address that because 2.3 million maligned by the Labour Government afterwards. I paid people are still unemployed. That is a serious situation her £30 a week and the Government made up the for all those people. balance. It was a very simple scheme and not as sophisticated as the schemes that we have today. That Richard Harrington: I agree with the hon. Lady, but person is still in employment, although I am no longer in my constituency the number of those on jobseeker’s anything to do with the company. She was 17 at the time allowance has come down from about 3,600 to, I think, and is now 40. That shows how old I am, but it also 1,700. I have met a lot of those 1,700 people and shows that such schemes can work for people. In my chatted to them. experience, the jobs that were provided under the last scheme would not otherwise have existed. It did not Sheila Gilmore: Over the past couple of years in subsidise a job that would have been there anyway. particular the number of people on jobseeker’s allowance However, I am perfectly happy to accept his point and has dropped, but the number of unemployed people has his experience. not. Only 58% of those who are unemployed are now in receipt of jobseeker’s allowance. The two figures are Mr Kevan Jones: I do not think that the hon. Gentleman considerably out of synch. has looked very closely at what we did in government. The scheme that my hon. Friend the Member for Cardiff Richard Harrington: I spend a lot of time at Jobcentre South and Penarth (Stephen Doughty) referred to is Plus—if the hon. Lady and her colleagues have their more akin to the scheme that the last Labour Government way, I am sure I will be spending a lot more time there had. The alternative is that people are sat at home doing after May next year—but I do that for a serious reason, nothing. I agree with the hon. Gentleman that if people which is to talk to people on jobseeker’s allowance. I do not get a work ethic early on, but have two or three have heard the Opposition speak about these matters, years sat on the dole, it is even harder for them ever to and one cannot argue with the Office for National get into work. Statistics and statistics such as that. However, I wanted 781 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 782

[Richard Harrington] on a second or third job to make ends meet to be able to pay basic bills. The basic costs of living, whether energy, to try to get to the bottom of the issue and—I am food or heating, are rising for them. It will do very little genuinely not trying to make a party-political point—that for the shift workers working in supermarkets in my has not been my experience in my constituency. constituency.

Bridget Phillipson rose— Jacob Rees-Mogg: This is a completely different Finance Bill from the one we have before us. The only decile of Richard Harrington: If the hon. Lady will excuse me, income that will actually be worse off in the next year is I have taken enough of Madam Deputy Speaker’s time. the top decile. In this Budget, there is £15 off fuel bills, a I conclude by referring again to the shadow Chief rise to £10,500 in the personal allowance, which helps Secretary to the Treasury, who is not here, because he the lowest paid most of all, and the freeze in fuel duty. painted a picture of the problem with millionaires getting All of that helps the worst off in society. pay rises and everybody else being increasingly Stephen Doughty: The hon. Gentleman fails to note impoverished. Next time he is in my constituency—as I that the average worker has become £1,600 worse off said, he is a regular visitor to Watford—I would very since his Government came to power. I am sure that he much like to meet him and show him around because is doing relatively well, but many people in his constituency, real unemployment has halved. Youth unemployment and certainly in mine, are not. Small businesses in my has dropped to pre-recession levels and is falling, and constituency are struggling with energy bills and business more than 400 new businesses have opened in the past rates. year. I would like him to come with me to Watford high street and meet Alex and Isabella, whom I met last Hard-working people across my constituency are £1,600 week. They have just opened an independent coffee worse off since the Government came to power. The shop there. Neither of them has any experience in increase in the personal allowance is often paraded by business, but they are operating on the high street, Government Members, but that is dwarfed by the 24 tax along with other businesses. Those businesses are real, rises that have hit hard-working people. At the same those jobs are real, and in the Budget and the Finance time, the Chancellor has given a tax cut to millionaires. Bill I believe the Government have done everything The hon. Member for Carmarthen East and Dinefwr possible to help the economy so that the experience of (Jonathan Edwards) is not in his place, but he spoke on Watford high street becomes not the exception but the that earlier. The economic advisor to the leader of Plaid reality for many people. Cymru has apparently also supported that recently. Mr Kevan Jones: Does my hon. Friend agree that 3.49 pm there is the problem of insecurity, even for those who Stephen Doughty (Cardiff South and Penarth) (Lab/ are in employment? Zero-hours contracts and a lot Co-op): I listened with care and interest to the hon. more part-time work make it difficult for many people Member for Watford (Richard Harrington), and I challenge to get credit, or even to dream of getting on the housing the idea sometimes portrayed by Conservative Members ladder. that the Labour party is somehow against business and does not understand it or the value it creates for the Stephen Doughty: My hon. Friend makes an excellent economy. We all do. I meet many small and large point. Indeed, I will come on to the value of high paid businesses in my community every week. Of course I and well paid work later in my remarks. That is one of want to see them grow and employ more people. I want the reasons I am such a strong supporter of the living them to employ people on better wages with better wage. I am not surprised that Government Members conditions and add that value. The comments of the will not give us an answer, when asked about the job hon. Member for Watford about people being able to figures, on how many of them are part-time, zero-hours buy Ferraris are revealing and go to the heart of the contracts and minimum wage jobs. That is deeply revealing. Government’s problem, which is that they have done so Businesses across my constituency are still struggling much to help big businesses and bigger earners but to get competitive financing to grow, yet bank bonuses done so little—or indeed have targeted—those who are rising again. The Chancellor is using his time in have less, be they small businesses or individuals on low Europe to fight on the bankers’ behalf, rather than incomes. That is the fundamental difference between looking at how we regulate our banks and financial those on the Government Benches and those on the sector in a sustainable and fair way that will drive real Opposition Benches. investment and real jobs in our economy. I am delighted to have the opportunity to speak on What affect businesses in my constituency just as the Finance Bill and to support the reasoned amendment. strongly, and 2.4 million businesses across the country, As my hon. Friend the Member for Nottingham East are energy price rises. They have hit the cafes I visit in (Chris Leslie) made clear, the Bill is long and weighty Grangetown as much as they have hit the hard-working but will do remarkably little, if anything, to tackle the nurse or police officer who is struggling to pay with cost of living crisis facing many of my constituents. It their energy bills in places such as St Mellons and will do much to support bigger earners and bigger Penarth in my constituency. Energy bills have risen by businesses at the expense of small and medium-sized £300 a year since the election. The Government constantly enterprises and businesses, and small and medium income try to con us into believing that they are cutting bills, earners in constituencies such as mine. It will do very but the bills continue to rise. The Government remain little for the bank clerk or the call centre operator unwilling to agree to an energy price freeze, although working for the banks and the financial industry in my this week one of the major energy companies agreed to constituency. It will do very little for the cleaner taking freeze its prices. 783 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 784

Earlier, my hon. Friend the Member for Houghton Mr Kevan Jones: Such as the right hon. Member for and Sunderland South (Bridget Phillipson) spoke Wokingham (Mr Redwood)? passionately about visiting food banks in her constituency. I meet people who are struggling to get by: people who Stephen Doughty: Indeed, indeed. have been in work and have been looking for work, but As my right hon. Friend the shadow Chancellor who are now experiencing the indignity of having to go pointed out today, it was Labour that supported, and to food banks for emergency help. indeed beat down, successive cuts in the main rate of corporation tax, which fell from 33% in 1997 to 28% in Mark Tami (Alyn and Deeside) (Lab): Many people 2010. Given that the rate today is 21%, however, we who are in work have to go to food banks as well, cannot justify another cut for bigger businesses when so because they are receiving very poor wages or are on many small and medium-sized businesses are under very poor zero-hours contracts. pressure. We want to see a cut that would benefit 1.5 million businesses throughout the UK, and in Wales Stephen Doughty: My hon. Friend is exactly right. I we are already leading the way in that regard. have met many such individuals in my constituency. A moment ago, I mentioned the success of the Jobs Two of the main food banks in my constituency are Growth Wales scheme. I want to highlight that success, Cardiff Foodbank and the Tabernacle food bank, which because there is a big contrast between it and, say, the is run independently by a church in Penarth. During the failures of the Work programme introduced by this festive period in the run-up to last Christmas, demand Government. As I said earlier, the Government cut the for the Tabernacle’s services was eight times higher than future jobs fund when they came to office. We in Wales, it had been over the previous festive period, and demand under a Labour Government, chose a different way, in Cardiff overall doubled. I found that information without which far too many young people would otherwise very revealing. If it does not give an impression of what be missing out on opportunities for growth, development is really going on—of the hardship that people are and experience. They would be sitting idly at home, facing, and the number of people who are on the edge rather than being out there developing skills and as a result of the cost of living crisis—I do not know contributing to the economy. what else does. My hon. Friend the Member for Airdrie and Shotts (Pamela Nash) has recently done some excellent work on Mr Redwood: Since devolution and the advent of a youth unemployment and highlighted that 900,000 young Labour Government in Wales, there has been more people throughout the country receive unemployment public spending per head in Wales than in London and benefits for more than a year—a figure that has doubled the south-east, yet the economy of London and the under the Government. Again, it is a tale of two approaches. south-east has greatly outgrown that of Wales. Why Obviously, we want the jobs guarantee to be funded by should that be? a bank bonus tax, learning from the example of schemes in Wales. Stephen Doughty: I am interested that the former I have strongly supported a living wage for some time. Secretary of State for Wales should want to make I congratulate Cardiff council, which has introduced a comparisons between the economic performance of living wage and Cardiff university, which took the bold Wales and that of the rest of the United Kingdom. As I step of introducing the living wage following campaigning said earlier, the Jobs Growth Wales scheme has secured by many organisations such as Citizens UK to bring work for 12,000 people who would not otherwise have people’s wages up so that they can earn more and cope obtained it. In fact, Welsh unemployment is now lower with the cost of living, and ultimately contribute more than unemployment elsewhere in the UK. I think that to the taxation system and the economy.I am disappointed the Welsh Labour Government are doing a very good that the Bill does not make any plans to boost wages job, notwithstanding the constant war on Wales being such as the Opposition’s proposals to incentivise firms waged by the Conservatives, which the right hon. Gentleman to pay the living wage by giving a 12-month tax rebate appears to want to continue. of up to £1,000 for every low paid worker who gets a rise. Increased tax and national insurance contributions What I have described is the reality of life in Britain raised from employees receiving higher wages would today for the constituents whom I have met at food fund that scheme. That is about a race to the top. It is banks, because of the cost of living crisis. We want the about building people up and getting them off social Government to take the steps we have recommended. security and into better paid jobs, rather than the We would like to see a Finance Bill that froze energy Government’s race to the bottom. bills, reformed the broken market, returned people to work—not just in Wales, but throughout the UK—with Tax avoidance generated some strong remarks from a compulsory jobs guarantee, cut taxes for 24 million the Chief Secretary when I mentioned it. This morning, people on middle and low incomes by introducing a 10p we heard that the Business Secretary has lost taxpayers rate, and cut business rates for small firms rather than billions in the Royal Mail fiasco. We need to look cutting corporation tax for the biggest. A moment ago, increasingly carefully at the Government’s great claims we were talking about the Welsh Labour Government. about tax avoidance and how much they will get back in It was only yesterday that their Economy Minister various deals and schemes. I wish only that they had announced a new business rates relief scheme for retail spent as much time in the past three years on measures companies. That is another example of the way in to stop people avoiding tax as they have on cutting taxes which they are prioritising small businesses, whereas for the richest. this Government are prioritising those at the top. Of I want to respond to the Chief Secretary’s comments. course, we would also reverse the £3 billion tax cut for Despite the Bill’s numerous clauses and instruments on people earning more than £150,000 a year. tax avoidance, which, I am sure, will be interesting to 785 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 786

[Stephen Doughty] Mr Jones: I put this question to the Chief Secretary to the Treasury earlier. Can the hon. Gentleman tell us debate, the amount of uncollected tax rose last whether the Liberal Democrats ever opposed the previous year. The Swiss tax deal will raise only a quarter of Government’s spending plans? Did they ever say that what the Chancellor claimed when he added it to his we should have been spending less? autumn statement. Many Opposition Members will treat with scepticism any future big claims about billions Ian Swales: Unfortunately, I was not here during the that will come from such deals when they are not last Parliament, but I have read a great deal of what my delivered. right hon. Friend the Member for Twickenham (Vince Tax avoidance is significant for the country’s finances Cable), now the Business Secretary, said at the time. He and is also regularly raised with me locally. Ordinary was warning of the difficulties many years before they taxpayers and businesses throughout the country are actually arose. I am quite certain that our party was concerned about companies and individuals engaging watching the situation carefully, and that it could see in aggressive tax avoidance and tax avoidance schemes, what was happening. and about individuals who fritter away this economy’s There is a growing myth, which was repeated by the wealth in tax havens and through other loopholes, hon. Member for Cardiff South and Penarth (Stephen rather than contributing. Doughty), who is no longer in his place—[HON.MEMBERS: I will examine the provisions closely and follow the “He is here.”] My apologies; he is in a different place. debates with interest. I am unlikely to serve on the That myth has also been repeated in the Opposition’s Finance Bill Committee this year, although I enjoyed it reasoned amendment, which states that greatly last year. [HON.MEMBERS: “Shame!”] Indeed, it “working people are £1,600 a year worse off”. is a shame. We need to continue to hold the Government’s Even the Institute for Fiscal Studies would admit that feet to the fire on tax avoidance. Many of our constituents that is to do with gross income; it is not to do with net would want us to do that. income, and it is not the amount by which people are The general anti-avoidance rule has been introduced worse off. Even the shadow Chief Secretary to the and there are new schemes about accelerating receipts, Treasury, the hon. Member for Nottingham East (Chris but will they generate more money for the Exchequer? Leslie) pointed that out in his speech. One reason why It is all well and good to introduce them faster—we all people are not worse off by that amount is that there want that—but will more money be raised? A recent has been a large cut in income tax. That was a high report in the Financial Times stated that the Office for priority for the Liberal Democrats, and I am delighted Budget Responsibility originally hoped that the tax that in a few days’ time people will have experienced a system would collect revenues worth 38.8% of national £700 tax cut since the general election. The Bill includes income in 2014-15, but that figure has been progressively another £100 for basic rate taxpayers. revised down to 37%. We have to treat some of the Government’s claims about tax revenues and receipts Julie Hilling: Would the hon. Gentleman like to mention with great caution. the 24 tax rises that his Government have introduced, including the massive hike in VAT? This Finance Bill does nothing to tackle the cost of living crisis that many of my constituents are facing. It Ian Swales: I will come on to some of those tax rises does very little to support the small and medium-sized in a moment. I am just saying that working people are businesses that are crying out for help, and it is continuing not £1,600 worse off, as the Labour amendment suggests. with out-of-touch policies such as millionaires’ tax cuts. There is no expert who says that they are. Instead of learning from the economic and employment successes of the Labour Government in Wales, this This Government’s tax cut has reduced inequality. It Government are continuing to attack and to smear that has been praised by the Living Wage Foundation as Government. They would do far better to learn from reducing the gap between the minimum wage and the them. living wage, and I am proud that my party has driven it through in this Parliament. It is also good that the Budget shows that there will be real growth in household 4.5 pm disposable income from now on. Ian Swales (Redcar) (LD): This Finance Bill represents Sheila Gilmore: Would the hon. Gentleman admit another step in clearing up the mess left by the previous that, for many low-paid workers, the increase in the tax Government. Most of my constituents know that a threshold over the past few years has been more than standard of living that depends on borrowing from the cancelled out by the cuts in tax credits, the freezing of bank and running up credit card bills will eventually child benefit and other changes? In fact, the Government be reduced when people have to start paying off the have given with one hand and taken away with the debts. That is what we had under the previous Government. other. The Opposition are trying to con the public— Ian Swales: Everyone is in a different situation, but it Mr Kevan Jones: Will the hon. Gentleman give way? is certainly not true to say that, for more people, the Government have given with one hand and taken away Ian Swales: Just a moment; I have only managed a with the other. The hon. Lady should know that. couple of sentences. The Opposition are trying to con The Opposition’s reasoned amendment also mentions the public into believing that the cost of living can a “tax cut for millionaires”. This is from a party whose remain the same, regardless of the history and of the former Business Secretary said that he was amount of money that was left behind. “intensely relaxed about people getting filthy rich”. 787 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 788

And it showed in what the Labour Government did for proposal is something of a red herring and a grim 13 years: the top rate of income tax was 5% lower than reminder of how Labour ignored the low paid in the it is now until 6 April 2010, the very last day Labour previous Parliament. Members sat on the Government Benches—until then The amendment also refers to energy bills, and that they cut taxes for millionaires every year they were in reminds me of what we often see from the Opposition: power; capital gains tax was 10% lower, meaning that writing the headline first and then filling in the detail hedge fund managers in the City had a lower tax rate afterwards—at least that is how it appears. They say than those cleaning their offices; tax relief was available that they want to freeze energy prices and they must be on pension contributions of £250,000 a year, whereas pleased at the recent Scottish and Southern Energy the current figure is £40,000—the difference is £100,000 announcement, but they should examine the small print, in tax; and VAT was 2.5% lower, making a top Ferrari because they would see that it involves the company £5,000 cheaper—that is what was actually happening cancelling investment. Of course, that was highly predictable for millionaires. when the price freeze was first announced. Everyone Mr Kevan Jones: What about Lamborghinis? from the OECD to uSwitch has rubbished the policy, because the price freeze will also freeze investment and Ian Swales: It was the same for Lamborghinis. freeze the position of the big six. The idea that it will somehow damage the big six is nonsense because, as all Mark Tami: The hon. Gentleman said that he was observers say, it will freeze out investment by new not here when the previous Government were in office players. I have six power station projects live in my and indeed he was not, but does he recall standing for constituency right now and I can tell hon. Members election when the Liberal Democrats had a poster talking that this price freeze announcement is totally spooking about the “VAT bombshell”? Will he actually remember the financial investors for those projects. Labour’s policy that? will lead to lower investment, less competition, more risk to supplies, and, ironically, higher prices. If it Ian Swales: I do remember that, but I would make wishes to persist with this policy, it needs to produce some comments about it. First, at that time we had not some independent experts who think it is sensible, but I seen the note left by the previous Chief Secretary to the have not yet found one who does. Treasury saying that there was no money left. Secondly, and unfortunately, the Liberal Democrats were 269 short Despite the fact that the shadow Business Secretary of an overall majority at the last election, so we did not has put his name to the motion, it does not contain a have the power to implement our manifesto. Thirdly, single word about business, which tells us something VAT is a good, progressive way of raising money from about Labour’s stance. It also cements its reputation as an anti-business party and shows that it has learned the wealthy. [HON.MEMBERS: “No it is not.”] I suggest hon. Members do the maths and have a look. I suggest nothing from the fact that, on its watch, manufacturing that those who doubt that talk to someone on the halved as a proportion of the national economy. minimum wage and ask them how much standard rate The Budget is good for business. It has been welcomed VAT they think they are paying, given that there is no by the north-east chamber of commerce, the Chemical standard rate VAT on their housing costs, food, energy Industries Association, the Federation of Small Businesses and utility bills, children’s clothing, public transport, and many others. As a north-east MP, I had a lot of TV licence and insurance. Standard rate VAT is not sympathy and empathy with what the hon. Member for paid on any of those items. Houghton and Sunderland South (Bridget Phillipson) After the number of enforcement and compliance said. staff in HMRC was slashed by 10,000 by the previous I welcome the £100 million extra for apprenticeships—the Government there was such a culture of tax avoidance number of which has doubled in my constituency. Despite that six years ago a Radio 1 DJ thought it was fine to the unemployment position in the north-east, we have, pretend to be a second-hand car dealer in order to avoid believe it or not, a skills shortage, so those amounts are paying £1 million in tax. I am pleased that this Government especially welcome. are doing something about such avoidance, including in I welcome the support for manufacturing. The doubling that particular case, and overall it is clear that millionaires of capital allowance to £500,000 will help those who had a much better time under the Labour Government. wish to invest. As a joint founder of the all-party group I now wish to discuss some other items in the Bill, the on energy intensive industries, I especially welcome first of which is the marriage tax allowance. That is the measures to support those industries. We have been only area where I have sympathy with the Opposition congratulated on them by the steel industry, although it amendment, as the measure was not a Lib Dem priority would like to see the measures implemented more quickly. and it does affect only one part of the community. For I also welcome the support for low-carbon technology example, it gives no benefit to a couple who are both on in the Budget. the minimum wage. We did not win the argument there and it is one area where we might have done things In the end, we must generate jobs, particularly in areas differently. The Opposition amendment then makes a such as the north-east. Over the past year, unemployment comparison with a 10p tax rate—I would have thought in my constituency has come down 22%, youth they would not have wanted to remind people about the unemployment by 31% and long-term unemployment 10p tax rate and the fact that they doubled taxes on the by 14%, and they are all significantly lower than they lowest paid in this country, but by reviving it, they were in May 2010. revive those memories. It is pretty irrelevant, as the I share the concern of the hon. Member for Houghton Institute for Fiscal Studies says, because we can simply and Sunderland South about the EU. There was a large raise the minimum threshold by half as much and inward investment project heading to my constituency achieve the same effect, or a very similar one. So that last year. We expected it to be signed, but suddenly, 789 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 790

[Ian Swales] down the world economy. Labour’s public investment did not cause the global credit crunch. Building new on 18 September, it was switched to France. I am certain hospitals and schools and recruiting tens of thousands that the uncertainty over our position in the EU was a of extra nurses, doctors, teachers and police officers in factor. That was disappointing, but it just shows that all Britain did not cause the sub-prime mortgage defaults this talk is damaging the economy now and not just in in the USA that started the collapse of financial institutions the future. throughout the world. It was not Labour’s public spending I am pleased that the Finance Bill includes another that triggered the world’s economic crisis but the global round of tax-avoidance measures. The Government interdependency of reckless banking that triggered an have taken many steps in that regard, but there are economic meltdown in Britain and across the globe. many more still to take. I welcome the publication a couple of weeks ago of the base erosion and profit David Rutley: Was not a record structural deficit a shifting paper. I hope the Government will act on that, major contributing factor as well? The hon. Lady seems and look in particular at the shifting of profit through to airbrush that out of the equation. interest payments. Of concern was the fact that the paper mentioned the possible exemption of infrastructure Julie Hilling: The hon. Gentleman should continue to industries from any measures in that regard. In particular, listen to what I have to say, because before the crash we there was a mention of the private finance initiative did not have the structural deficit that he is talking industry, which ballooned under the previous Government. about. For example, junctions 1A to 3 of the M4 is 50% owned in Guernsey, 50% of schools in Redcar are owned in Jersey and, most absurdly, the whole of Her Majesty’s Mr Kevan Jones: The hon. Gentleman just referred to Revenue and Customs offices are owned in Bermuda. a “record structural deficit”, but according to the OBR The exemption of those companies that have put in in 2010 it was 7.7%. In 1998, it was more than 8%. place those structures and the suggestion that they are not shifting profits out of the UK needs to be looked at Julie Hilling: I thank my hon. Friend for that intervention. again. At the very least, we should consider how PFI I will come on to some of the details in just a moment. business cases are assessed, as it seems to be the norm to Before they say that Labour should have done more move the profits out of the country. to regulate the banks, Government Members must show Labour has very little to say about this Budget. In some humility. The Conservatives wanted less regulation. fact, the Leader of the Opposition had nothing to say. Yes, Labour responded by boosting public spending The Opposition do not seem to have a coherent plan, and borrowing to offset the catastrophic collapse in although some of their measures are at least interesting. private sector spending, and the £90 billion spent on the They appear to be using the same statistician as the bank bailout plunged the public sector into record leader of the UK Independence party for some of what annual deficit, but what would they have done? Would they do. Although there is a long way to go, this they have allowed the banks to collapse and allowed us Finance Bill will produce a stronger economy and a to go into a depression worse than that in the 1930s? fairer society, which is what my party wants to see. Would they have allowed thousands, if not millions, to lose their houses, their pensions and their jobs? Yes, we bailed out the banks, we cut VAT and income tax and 4.19 pm we gave 150,000 businesses more time to pay their tax Julie Hilling (Bolton West) (Lab): Mr Deputy Speaker, bills. We put in place measures that helped 300,000 I find these financial debates deeply frustrating and people stay in their homes and we set out how we would often very bad for my blood pressure, particularly when halve the deficit over four years once the recovery was I follow— in place. Do Conservative Members agree with those who Mr Deputy Speaker (Mr Lindsay Hoyle): We do not were on their Front Bench at that time? They opposed want you to collapse—the hon. Lady does not have to the fiscal stimulus and the measures to support the speak if it has such a great effect. economy and families. They pushed for the deregulation of the mortgage market even as the crisis began and Julie Hilling: I assure you, Mr Deputy Speaker, that I they voted against the Bill that became the Banking will not collapse. I might just get a little excited. (Special Provisions) Act 2008, which would have let I find speeches such as that just made by the hon. Northern Rock fail. Where would families and businesses Member for Redcar (Ian Swales) exceedingly frustrating. be now if the Tories had got their way then? The Government say that they want to build a fairer society, but fairer for who? Their actions certainly are Jacob Rees-Mogg: It is highly questionable that Northern not fair for the 2.5 million people seeking work and the Rock needed to fail if the Bank of England had been nearly 1 million young people still being left on the willing to act as a classic lender of last resort when there scrapheap. The Chancellor says that this is a Budget for was a liquidity problem rather than a solvency problem. makers, doers and savers, but it does nothing for those who are making do and who, far from saving, find Julie Hilling: I thank the hon. Gentleman for his themselves deeper and deeper in debt. intervention. At that time our Government needed to The worst thing is the continual ridiculous comments act to bail out those banks. He says that the Government that the global financial crash was caused by my right need not have acted if the Bank of England had, but the hon. Friend the Member for Kirkcaldy and Cowdenbeath reality is that the Government acted and needed to (Mr Brown). Powerful though he is, he did not bring do so. 791 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 792

It has been claimed that before the global collapse we people on zero-hours contracts or the number on the were spending too much, so why did the right hon. minimum wage. They also cannot tell me how many of Member for Witney (Mr Cameron) pledge in 2007 to the jobs now designated as being in the private sector match Labour’s spending plan for further three years—to are simply jobs transferred from the public sector, even match our spending on investment, jobs and growth? though we know there are a large number of such jobs. The level of debt under the Labour Government The proud boast that over a million new jobs have been before the banking crisis was lower than that we inherited created is based on sand. We do not know how many are from the Tories in 1997. We brought the deficit down, really new jobs, how many are unpaid, how many are low- we brought borrowing down and, far from failing to fix paid, how many are zero-hours or how many are temporary. the roof when the sun was shining, we invested in The Government like to think that any job is better than repairing the terrible state of our public services. People unemployment—a job at any price—but that is causing were dying on hospital trolleys before they were seen, untold misery to many. others were waiting a year to get on the waiting list Let me tell the House a story of a man who went to before waiting another year to have their operations, the Allerton food bank. He was absolutely made up schools were crumbling, the railways were decaying and that he had got a job in Poundland. In week one, no youth services were disappearing. We repaired all that, work was offered; in week two, still no work offered; in and then the bankers behaved totally irresponsibly and week three, still no work offered. At this point he and brought down the world economy. his family were existing on boiled pasta because that Yes, there was a failure by every Government right across was all they had in their household. Fortunately, somebody the world to recognise the seeds of the banking crisis, directed him to the food bank. People at the food bank but it was not caused by Labour’s overspending, and it helped him and spoke to Poundland, who said, “Well, was not caused by Labour’s high borrowing or high debt, we can’t finish him because he may get hours next because none of those things was going on before the week.” In the end he had to resign from his job and take banking crisis. If we had not dealt with the crisis as we the hit from the Department for Work and Pensions did, the whole economic and banking system in Britain because he had resigned from a job—a job in which he would have collapsed. If our Prime Minister at the time was never given any hours to work. He had to resign so had not worked with other world leaders to bail out that he could feed his family. banks and bring forward investment, the world would Zero-hours contracts are a scourge on the unemployed, have been plunged into a depression beyond belief. but instead of cracking down on them, the Government We need honesty from the Government Benches fail to collect statistics. Other sources estimate that a to acknowledge the truth. The Government should million people are on zero-hours contracts; a million acknowledge that the national debt has doubled on people who do not know whether they can feed their their watch to £1,400 billion. They should accept that families or pay their rents each week; a million people wages are down by £1,600 a year since May 2010, and who cannot get a mortgage or a loan to buy a car; a that people will be worse off in 2015 than they were in million people who can make no plans for their future. 2010. The Government should acknowledge that they It is like the bad old days when people had to queue up have introduced 24 tax rises, that energy bills are up by at the dock gates just to be picked for a day’s work. almost £300 since the election, and that even though These workers are paid 40% less than those on permanent they inherited a growing economy, they squashed that contracts, and 20% of them have said that they have growth, had three years of flatlining and have overseen had money docked or been penalised in some other way the slowest recovery for 100 years. if they were unable to work when they were called for at a moment’s notice. Half of the people have said that The Government like to talk proudly about the number they have had shifts cancelled at the last minute. The of jobs that they claim have been created in the private Government should take Labour’s lead and regulate sector, so I asked them some questions about those jobs. zero-hours contracts, not allow the exponential growth I asked how many of the new jobs created lasted more that has occurred under their watch. than 12 months, but they could not tell me because they do not collect those statistics. So I asked them Jonathan Edwards: The Social Services and Well-being “how many new jobs created in the private sector in the last (Wales) Bill was recently passed in the Welsh Parliament 12 months were (a) unpaid workfare or internships, (b) through and my party put forward an amendment to prohibit zero-hour contracts, (c) part-time, (d) part-time working 16 hours or less per week, (e) part-time working eight hours or less per the use of zero-hours contracts in that sector, yet the week, (g) paid at the level of the minimum wage and (h) jobs hon. Lady’s party, the governing party in Wales, voted transferred from public sector organisations.” down that amendment. What is her message to her colleagues in Wales? What a surprise. I was told: “Information regarding the number of jobs created is not available. As an alternative, estimates relating to the net change in Julie Hilling: With the greatest respect to the hon. the number of people in employment in the private sector have Gentleman, I am not a Welsh Member and I am not a been provided from the Labour Force Survey (LFS).”—[Official Member of the Welsh Assembly, so I do not feel able to Report, 11 November 2013; Vol. 570, c. 460-61W.] comment. However, I wholly believe that what the Estimates showed that more than a third of the new Labour party says it will do in government is the action jobs that have been created are part-time, and that a that should be taken, and that we need to crack down third of those are under 16 hours. However, the Government on zero-hours contracts. do not collect the figures for those people who are on The Government have presided over the destruction unpaid Government schemes or internships, even though of permanent appropriately remunerated jobs with decent those are included in the number of new jobs created. terms and conditions, with the creation of insecure, They cannot tell with any accuracy the number of poorly paid private sector jobs. 793 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 794

[Julie Hilling] 4.35 pm Charlie Elphicke (Dover) (Con): It is a real pleasure, At least we have not had the omnishambles of a as always, to follow the hon. Member for Bolton West Budget that we had a few years ago. I am pleased that (Julie Hilling). Listening to her speech, and indeed that the Chancellor, albeit secretly, has turned to plan B and of the shadow Chief Secretary to the Treasury, the hon. is investing in infrastructure. But he is still doing nothing Member for Nottingham East (Chris Leslie), I was to tackle the cost of living crisis, and he is still ploughing reminded, given recent events in Ukraine, of the charge ahead with further unnamed cuts. But we know where of the Light Brigade in the first Crimean war, which we some of those cuts are being made. We already know fought some years ago. They were very game, very that northern local authorities are bearing the brunt of determined and, in complete denial of the situation in the cuts in local government spending. Bolton will have which they find themselves, carried on regardless. It was lost £100 million from its budget, cutting services to the fascinating to listen to the shadow Chief Secretary’s most vulnerable. Will the Government ever accept that amazing negativity about the changes the Government they cannot cut their way to growth; that holding down have made. The Government have turned around a very wages means that more people are reliant on tax credits difficult situation that they inherited. and many are in poverty? The hon. Member for Bolton West seems to have a The proposals on pensions appear to be welcome, but somewhat short memory, to put it gently. She was quick the Budget has done nothing for the 1.6 million pensioners to blame the problems on everyone else, but slow to living in poverty. Nor will it do anything for the crisis in acknowledge any responsibility on the part of the previous social care, which has seen the number of older people Government. It is important to remember that there receiving support falling by more than a quarter since were problems in the UK’s banks due to the extremely 2005. Proposals on child care are welcome, but we need poor and dislocated regulatory system put in place by action now not in 18 months’ time. I met a woman on the previous Prime Minister. There were problems with Friday in Horwich when I was campaigning for an this country’s finances, and not just since the 2008 energy price freeze who told me that she used to work in recession, because the previous Government ran a structural a nursery, but had to give up her job because she could deficit from 2002 onwards, which left this country massively not afford the child care costs for her own two children. exposed. They said that they managed the crisis so well, How on earth can the Government justify sacking but the UK, as some of us recall, had one of the largest tax collectors when the tax gap is somewhere between budget deficits in the developed world. They spent the £35 billion and £120 billion? In 2011-12, before the last good years introducing more welfare and more spending, round of cuts, 20 million calls to HMRC were not rather than controlling welfare and spending and making answered. The estimated cost of those calls was £33 million, sure the UK’s finances were in a good state while the and the value of customers’ time was estimated at sun shone. £103 million. Since then, the number of staff has been further reduced. Recent figures show that there were Mr Kevan Jones: The hon. Gentleman, who was not a fewer confiscation orders in 2013 than in 2012 and less Member in the House at that time, belongs to a party money was recovered, and only four officials are hunting that throughout that whole period was calling for less 124 of the worst tax dodgers. The biggest scandal of all banking regulation, not more. I know that he is one of is that the Government say that they reduced the top the new Members who have been programmed to think rate of tax from 50% to 45% because people were avoiding that way by Tory central office, but the facts are that the paying their tax. They think that if people are poor they GDP debt in 1997 was 42% and by 2008 it was down to will work harder if their pay is cut. They think that people 35%. Those are the facts, irrespective of what Tory should pay all their tax, and that will make them better central office tells him. He cannot deny the facts. people, getting jobs and working harder. But the rich just have to pay less. They just have to say they will find Charlie Elphicke: The hon. Gentleman knows perfectly other means so that they do not have to pay their taxes. well that his Government ran a budget deficit for a very What a nonsense. If the poor do not pay their taxes, long time. Running a budget deficit is understandable they are prosecuted. If the rich do not pay their taxes, when coming out of recession, but not in a time of they get a tax cut. Even sadder, is that in the only full economic success. The previous Labour Government’s year that people had to pay the 50% tax, when they irresponsibility left this country badly exposed. could not pre-pay or post-pay their tax bills, it brought in £1.1 billion extra. Perhaps I am a little strange, but I Mr Kevan Jones: I am sorry, but the hon. Gentleman think that £1.1 billion is quite a lot of money. It could must look at history. The previous Conservative go some way towards solving some of the problems in Government ran a budget deficit for about 16 of their our economy and some of the desperate situations my 18 years in office. In 1997 the deficit was nearly 8%. He constituents face. has to look at the facts. The previous Tory Government Until the Government deal with the cost of living ran a deficit even in good times. crisis facing so many people in Britain today, they cannot possibly claim to be building a fairer society. It is Charlie Elphicke: Let us talk about those good times. an utter disgrace that in the sixth richest country in the Before the downturn in the ’90s, the national debt was world people are dependent on food banks and children at least 10 points lower than before the latest crisis. are going to bed hungry. It is a disgrace that people are living in houses with no heat because they cannot afford Jacob Rees-Mogg: Surely the hon. Member for North the bills. It is a disgrace that long-term unemployment Durham (Mr Jones) is forgetting that the success of the is going up. Yet again the Government seem to miss the Labour party in the first two years came because it point. They leave the poor and the vulnerable to suffer. followed Conservative spending plans. 795 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 796

Charlie Elphicke: Indeed. Julie Hilling: This is the sort of speech that raises my There was Labour’s crash. We hit the wall in 2008 and blood pressure. Where does the hon. Gentleman believe were left overexposed in a bad place with an economy the recession started? Does he agree that the global that had been run very badly for a long time. Then the economic crash started in America? Does he accept that Labour party has the cheek— his party in opposition argued for less financial regulation? What would he have done when the crash came—let the Mr Kevan Jones rose— banks go and left everything else to go into a depression?

Charlie Elphicke: I have given way quite a lot. I think Charlie Elphicke: I apologise to the hon. Lady if we have heard enough from the hon. Gentleman for a I raised her blood pressure. In England, the NHS will minute. Will he allow me to develop my points? look after her very well; it has an increasingly good record. The Labour party, having learned nothing and forgotten I turn to where the Labour party has managed to get nothing, has the gall to say that when we woke up in to. We have set out a clear economic plan, through spring 2010, with a new Government, everything should which we have successfully cut the deficit by a third and immediately have been fine. Recessions are not like that; cut taxes on average by £705 for hard-working people. they continue for some time. It takes time to fix the car We have managed to support business and cut business after it has been driven into the ditch. The absence of taxes, which the anti-business Labour party has taken any sense of responsibility from the Labour party for to opposing of late. It says it supports the welfare cap, the difficulties that it left and the toxic legacy that but in media interviews it wants to exempt this and that the Government inherited is, frankly, extraordinary. benefit from it. We have managed to take firm action to Government Ministers have done great work to turn control immigration and we have plans for better skills things around and fix things. We cannot hand back the for our young people, to give them a better future. keys to the people who crashed the car when they remain in denial as the Labour party does today. Simon Kirby (Brighton, Kemptown) (Con): Is it not true that we have not only a plan but a long-term plan David Rutley: Was not the real crime of the previous that is credible and believable and is beginning to show Government that they became completely absorbed in some success? If Labour Members have a plan, perhaps what Lord Turnbull—not Conservative central office—said they might tell us about it. was complete wishful thinking? Through successive periods of economic growth, the Labour Government lost sight Charlie Elphicke: I completely agree. It is a major of the fact that there would inevitably be a bust after a problem for Labour Members that they are unable to boom, and that they would have to prepare for it. They welcome any positive move. They look around and missed that obvious challenge, and we are having to must surely see that a recovery has been building and clean up the mess. the situation is improving, but all they can do is stick their heads in the sand and issue a cry of complete and Charlie Elphicke: The Labour Government were utter denial. delusional. I recall them saying for a long time that they Some years ago, the Leader of the Opposition said had abolished boom and bust. It is great shame that the that the Conservative plans would mean the loss of right hon. Member for Kirkcaldy and Cowdenbeath 1 million jobs. Far from that, 30.19 million people are in (Mr Brown), the former Prime Minister, is seen so employment, up by 1.3 million since the election. There rarely in these parts these days; it would be interesting are 1.7 million new jobs in business. We have an employment to hear his take. rate that is up since the election and an unemployment rate that is down since the election. Dr Thérèse Coffey: Where is he? Then Labour Members moved on and sought other ground on which to go around stirring up negativity Charlie Elphicke: Since he was bundled out of Downing and spreading apathy, as they do, up and down the street, he has been in the attic of Portcullis House but land. They thought they might find a more profitable has been in the Chamber very rarely indeed. That is a situation in drawing a distinction between full-time and shame. part-time jobs. For a while, as we repaired their damage, One might think that the Labour party, having had that rather seemed to work for them, and they thought four years to reflect, might not only accept full responsibility there was some profit in it. They glossed over the fact but try to develop its own economic plan. Saying how that during the previous Parliament the number of dreadful everything is but having no plan to take things full-time jobs fell by 320,000, because they found that forward is no plan to take to the country in a general inconvenient and wanted to seize on the problems of election. people in full-time jobs as the economy recovered. As I listened to the comments of the shadow Chief Unfortunately for them, the number of people in full-time Secretary to the Treasury, a question struck me: what employment has been rising. In the past year it increased does the Labour party have to say to the person who by 430,000, and there are now more people in full-time worries about their job, wants their business to succeed employment than there were at the time of the general and would like their kids to do well? The party is election. Then, there were 21 million people in full-time adopting policies that are so anti-business and so employment; today, there are 22.1 million people in unimaginative about any kind of job creation—other full-time employment. This Government have done well than spending the same money 10 times over and claiming not only on jobs but on full-time jobs. that as a new pledge. It has so little to say to the country Seeing that that line of attack did not render profit to and about the future; all it can do is sink into a sea of them, Labour Members then thought they would start negativity. talking about long-term unemployment and seize on 797 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 798

[Charlie Elphicke] that is positive action from the Government, who understand the challenges that people have faced because the long-term unemployment figures for young people, of the legacy we were left. which the hon. Member for Bolton West (Julie Hilling), We have seen council tax frozen. We have seen the fuel who would have made a very good cornet at the charge duty rises planned by the previous Government held of the Light Brigade, said were going up. Unfortunately back. In this Finance Bill we have seen particular help for her, that is not the case. During the previous Parliament for the least well-off, with the increased personal allowance. they did go up, across the country, by 311%, but in the I have long been an advocate for increasing the personal past year they have gone down by 30%. Their whole allowance, to take the least well-off out of tax all together. theory about long-term unemployment does not work. The allowance is rising to £10,500, which is welcome. I congratulate the hard-working people of Birmingham, It is not just about hard-working people, however. We Ladywood, who saw their long-term unemployment also need to be concerned about people who are retiring. among young people rise by 103% under the previous The work we are seeing on pensions—with a higher Labour Government but have seen it fall by 4% since flat-rate pension and a move to get people out of the this Government were elected and by 31% in the past annuity requirement, to give them greater choices about year. In my constituency of Dover, the figure went up what to do with their hard-earned, hard-saved money—is by 700% under the previous Labour Government. That really attractive as well. was a very sad, despairing thing. So much hope was This Finance Bill does a great job in extending the taken away from so many of the young people I represent. Government’s work on recovery and ensuring that we I welcome the fact that the figure has fallen by 22% in are set fair for the future. Thankfully, it was not a give-away the past year. Budget and it is not a give-away Finance Bill. It should Bit by bit, the Opposition’s case disintegrates—nowhere be, and is, steady as she goes: the work is not yet done. more so, hon. Members may be interested to learn, than This Government recognise that much has been done in the constituency of the Leader of the Opposition, but there is much yet to do. This Bill is a key part of the who gave such a fascinating response to the Budget the way back for Britain and of the kind of future that we other day. In his constituency, long-term unemployment can build, for people who work and for businesses that among young people rose by 1,600%—not under this are growing today, and also for our young people tomorrow. Government but under the previous Government in which he served as a Cabinet Minister. Since the general 4.53 pm election, that figure has fallen by 9%, and it is down by Mr William Bain (Glasgow North East) (Lab): It is 31% in the past year alone. always a pleasure to follow the hon. Member for The Opposition have no long-term economic plan, Dover (Charlie Elphicke), who offers such insight and just pure negativity. In each negative case they raise, entertainment value to the House. He called for optimism, every figure or statistic they snatch at seems to disintegrate and I hope to paint him a picture of the sunlit uplands in their hands. They would have better spent their time of a Britain changing under the next Labour Government, putting forward a true alternative economic vision for elected next year. this country than seeking to attack a Government who Today is a day of anniversaries that demonstrate the have been trying to fix the problems that this country difference in values between this coalition Government has had and repair the toxic legacy that they inherited. and the previous Labour Government—and, indeed, the different values of the next Labour Government. I turn now to the cost of living—after all, that is the Fifteen years ago today, the national minimum wage latest part of the Opposition’s case. They are keen to came into effect. We had seen people in this country point out that wage inflation has not kept up with real paid less than £1 an hour, with some of the most prices. That has been the case after every single recession, disgraceful poverty pay to be found in a large developed which is why I made the point that in 2010 we were not European country. But of course, last year, this day was simply going to get an immediate, overnight repair after the day on which the iniquitous and vile bedroom tax Labour’s crash—it was going to take some time. We came into force. Anyone who has dealt with constituents— now stand on the threshold, as the time is fast approaching anyone who, as I did last year, has held the hand of a when wages are likely to outstrip inflation. We have seen disabled lady with tears in her eyes, who was wondering the latest figures: inflation is now at 1.7%, down from how any Government could visit such an iniquitous tax 2.8% a year ago. Wages have grown 1.4% in the three on people like her—will recognise the differences in months to January when compared with a year ago. The those values and the significance of those two anniversaries. moment is therefore approaching when the cost of living argument will face a challenge of its own. What Those different values are written throughout this will the Labour party say then? What case will it take to Finance Bill. This is not the Finance Bill that this country the country, as people see that the Conservatives’ work needed or with which it should have been presented. to repair the country’s finances and the value of work is It is a damp squib of a Finance Bill—a no-change taking hold? Finance Bill from a bedraggled Government who are increasingly all at sea. Of course, Labour has also latched on to the issue of energy prices, but we have seen the Government’s action Ian Mearns (Gateshead) (Lab): It is appropriate to to undo the hard work done by the Leader of the remember the anniversary of the minimum wage today Opposition when he was Secretary of State for Energy of all days, because let us not forget that its introduction and Climate Change in putting green levies into our was opposed absolutely by the Conservative party. Some electricity bills. Those have been rolled back and we people were being paid less than £1 an hour—people have seen a positive impact and a positive announcement living on my street were being paid 70p an hour for from SSE, which has pledged a freeze until 2016. Again, doing jobs in the security industry 15 years ago. 799 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 800

Mr Bain: We remember the tooth-and-nail opposition Ultimately, this Finance Bill is soft on the banks and of the Conservative party to the minimum wage and the hard on ordinary working families. It fails the national lack of support for it from Scottish nationalists—none economic interest in three main ways. First, it does nothing of whom are present—when the previous Labour to boost growth. According to the OBR, its measures Government legislated on it. and the Budget that it will enact contribute nothing in The Government are all at sea as to how to reverse terms of an uplift in growth and, in relation to trade the decline in living standards over which they have and exports, there will be no contribution to growth presided. Under this Prime Minister, living standards from net trade over the next five years. The Budget also have fallen more sharply and for longer than under any fails to raise levels of business investment, which are Prime Minister since the second world war, including currently among the worst in the EU and the G20. Heath, Thatcher, Wilson, Callaghan, Eden, Macmillan, Secondly, this Finance Bill does not meet the challenge Douglas-Home and Churchill. If this Government were of our times in that it fails to tackle our growing crisis a football club, the team would be at the bottom of the of long-term youth unemployment—up by 50% since league, facing relegation at the end of the season, with 2010—and it takes no measures to deal with under- rising clamours for the manager to be given the sack. employment. The Institute for Public Policy Research Some have even called for the return of the special one has today identified that as a growing crisis for our to come and lead the blues—no, not José Mourinho, country, with more than 1 million people going to work but Boris Johnson—and speculation is rife as to which for low wages and seeking more hours, but unable to get Government Member will be sent to the subs bench in them in this weak economy. order to let him get back in the team after the next Thirdly, this Finance Bill entrenches the inequities of general election. its predecessors in this Parliament by failing to repeal the hated bedroom tax, which has devastated 2,500 people in my constituency and 600,000 people across Ian Swales: I agree that the minimum wage was one the whole country. It fails to reintroduce a 50p rate of of the great achievements of the previous Government income tax for those earning more than £150,000 a year, and I think that more should be done to police its or to introduce a 10p starting rate of income tax, which implementation even today. However, does the hon. would benefit 24 million taxpayers. Gentleman share my regret that his Government took more than £1,000 a year in tax and national insurance All that at a time when the Bill offers banks a further away from people on the minimum wage? The reduction tax concession in the bank levy and when the Government of £700 a year in their tax bill has given them a are failing to get to grips with the skills revolution that real-terms net increase. is needed if we are permanently to earn our way to higher living standards. At an event in London only today, the IPPR has said that Britain’s performance on Mr Bain: I hope the hon. Gentleman will use his skills has been worse than that of our leading competitors undoubted influence to speak to the Business Secretary, since the beginning of the economic crisis. If we are to whose Department has presided over a 10% drop in the get people into better-paying jobs, fill in our hollowed-out real value of the minimum wage since 2010. Indeed, if jobs market and repair the losses of jobs in construction the hon. Gentleman wants to build on the success of the and manufacturing, this Government and their Labour minimum wage, he ought to speak to the Secretary of successor next year will clearly have to do much more State about how he is going to reverse that trend, on skills. The lack of any incentives in the Bill to improve because the small rise announced by the Low Pay skills in the workplace or to improve apprenticeships is Commission simply will not do the job. How on earth a serious omission that does not serve the national will there be a £7-an-hour minimum wage by next interest well. October? That was the Chancellor’s pledge at the beginning The conclusion one has to reach on examining the of the year, but it is hard to see it happening, given the entirety of the Bill—all 295 clauses and 34 schedules—is remit involved and without this Government taking that it is long on detail, but short on real action. It does firm action on enforcing and improving the national nothing to raise the incomes of people in the rest of the minimum wage. country, while it perpetrates a recovery simply for those I welcome some aspects of the Bill, such as the tax at the very top of society. If the International Monetary concessions for participants in the Glasgow grand prix. Fund—those well-known crypto-leftists—and President I believe they will attract a world-class field for that Obama get the point that cutting the gap between rich athletics meeting and ensure that those athletes stay on and poor is vital to having a recovery for every one of for the Commonwealth games. That will add to the us, it is a matter of regret that this Government do not economic growth of my city, Scotland and, indeed, all seem to get it. of the United Kingdom. I am sure that any hon. Member who has witnessed Ian Swales: The hon. Gentleman is making a point the scourge of the rise of fixed odds betting terminals about inequality, but does he not welcome the fact that on high streets up and down the country will support the Red Book states that the increase in machine games duty. Anything that “inequality is at its lowest level since 1986”? discourages people from spending their hard-earned Does he regret that inequality widened under the 13 years wages on those machines—I am sure that every hon. of a Labour Government, which is a truly shameful record? Member is aware of this issue—should be welcomed. The Government should be going much further, of Mr Bain: I hope that when the hon. Gentleman speaks course, in regulating the way in which those machines to his constituents in Redcar, he will remind them of the operate. They take a terrible toll on some of the poorest entirety of the record of the previous Government, who communities in the country, including in my constituency. of course oversaw a dramatic decline in pensioner poverty 801 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 802

[Mr Bain] them with some unspecified alternatives. Yesterday, he disgracefully called the bedroom tax a success. That will and a huge fall in child poverty. Those policies did be long remembered by the 600,000 people across the work. The inheritance we were left on both counts in country and their families and friends who see it not as 1997 was a disgrace that should have shamed Conservatives a success, but as an abhorrence that should be scrapped who were Members of that Parliament. without delay. Let me deal with some of the specific measures that Charlie Elphicke: Will the hon. Gentleman give way? are set out in the Bill. On the personal income tax allowance, it has been established by the IFS and the Mr Bain: I cannot resist giving way to the hon. Resolution Foundation that four fifths of the benefit go Gentleman. to people in the top half of the income distribution. As I said to the Deputy Prime Minister in questions last Charlie Elphicke: In fact, in the previous Parliament week, the sneaky freezing of the work allowance by this the relative figures for child poverty rose and the gap Government, which was announced in the autumn between rich and poor rose, but those numbers have statement and confirmed in the Budget and the Finance reduced since this Government have been in power. Bill, means that £600 million will be removed from the post-tax incomes of hundreds of thousands of people Mr Bain: Over the entire period of the Labour on low incomes. That is another example of the Government, pensioner and child poverty were lower Government giving with one hand through the personal than they were in 1997. If the hon. Gentleman examines tax allowance, but taking two thirds of it away with the the records from the Institute for Fiscal Studies, he will other. see that that is clearly the case. The Government have not taken the steps that are Jacob Rees-Mogg: Will the hon. Gentleman give needed to enforce the minimum wage and ensure that way? there is a real wages recovery for people in the lower half of the income scale. Liberal Democrat Members Mr Bain: I simply cannot resist giving way to the hon. have spoken in this debate about taking people out of Gentleman, whose constituency shares part of its name tax, but in the next financial year, 1.6 million low-paid with mine. people will still pay national insurance contributions and higher VAT. People will not forget that they have Jacob Rees-Mogg: There is a union between those of not been made better off by this Government’s fiscal us who have “North East”in the title of our constituencies, policies, but have been made worse off. This is the first and we always give way to each other politely and Government in over a century who will have to go back gracefully. to the electorate with that record. We need to be very careful on the issue of inequality, Despite the changes on individual savings accounts, because it turns out that it can be narrowed by having a people have seen the savings ratio in this country fall deep recession. That surely cannot be the object of any over the past few years by 3%. People have been forced Government’s policy. We should therefore look at the to draw down their savings to make ends meet. The figures with care. The same is true of relative poverty—it collapse in real wages has been compensated for by the can be reduced through a recession. reduction in the savings ratio. The measures in the Bill will not be enough for an Mr Bain: There is a degree of wisdom in what the increase in savings. That is not surprising because people hon. Gentleman says. I encourage him to look at the would need to earn more than £125,000 a year to get work of the social mobility and child poverty commission, full benefit from the changes to ISAs. The Government which has come up with some interesting conclusions. It should have come forward with more radical measures is critical that there is better investment in skills. My to increase saving, particularly for low earners—policies constituency was once powered by the railway industry. such as the Saving Gateway that was introduced by the The economic heart of my constituency is now the previous Government and scrapped almost immediately college that is across from my constituency office. That by this Government in 2010. is the means by which children in a ward with one of the highest levels of child poverty in Scotland will get the The Chief Secretary was quick to boast of the effects skills that they need to succeed in the jobs that we want the Bill will have on income from tax avoidance schemes, to create in a modern economy. but as the Office for Budget Responsibility and the Institute for Fiscal Studies confirmed after the Budget, Julie Hilling: Before my hon. Friend moves on from there are higher up-front taxes payments, although in a statistics, does he agree that one of the cunning ploys of sense they are over-balanced by reduced revenues from the Government is to change the way in which they 2019-20 onwards. The average benefit of the policy is a measure things? There are fewer people in poverty mere £90 million a year. because they have shifted the point at which they declare The Government should have been far bolder in the that people are in poverty, and fewer people are waiting Bill in bringing forward more ambitious provisions to in A and E because the measure for waiting times has tackle avoidance and evasion. Where are the clauses been shifted. that would have introduced mandatory company-by- company reporting of taxes paid and profits made? Mr Bain: My hon. Friend is entirely correct. It is Where are the provisions on beneficial ownership of shameful that the Secretary of State for Work and companies? They were promised by the Prime Minister Pensions has abandoned the child poverty targets of the at the G8 summit, but we have seen nothing of their previous Government and is instead trying to finesse delivery. 803 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 804

For some of these policies, the IFS has noticed a This is the damp squib Finance Bill of a failing and worrying trend. Yes, the Government have provided lethargic coalition slithering its the way out of office. extra child care assistance for people through universal Our country deserves better. Next May, it will get it credit, but how is that paid for? By £200 million a year with a Labour Government. cuts to other, unspecified, parts of universal credit. The IFS has said that that is happening across a range of policy areas: permanent giveaways are funded by temporary 5.16 pm increases in revenue, but there is no long-term plan David Rutley (Macclesfield) (Con): It is an honour to about where the money is coming from. With that kind follow the speech of the hon. Member for Glasgow of financial planning, it is unsurprising that the Government North East (Mr Bain). I anticipate hearing the words of are borrowing £190 billion more over this Parliament my hon. Friend the Member for North East Somerset than they predicted at its beginning. (Jacob Rees-Mogg) and I, as the Member for Macclesfield, For business, we welcome the reverse in cuts to capital represent north-east Cheshire. and investment allowances, but it is stark to consider It is good to see you smiling in your place, Mr Deputy that the Government’s policy goes up only to 2016. Speaker, because the sea of gloom on the Opposition Business needs certainty and does not know what the Benches reminds me of one of Eeyore’s greatest quotes: Government’s plans will be after 2016 for capital and “‘It is snowing still,’ said Eeyore gloomily…‘And freezing investment allowances. Imagine if we are back in the …However,’ he said, brightening up a little, ‘we haven’t had an same position as in 2011 when this Government cut earthquake lately.’” those allowances? I hope that when he responds to the That is the spirit on the Opposition Benches: gloom and debate, the Exchequer Secretary will offer assurances to despondency.This morning I went to the annual conference business that there will be certainty in investment and of the British Chambers of Commerce. Opposition capital allowances for the rest of the OBR’s forecast Members are out of touch with the mood of the business period, because that is certainly not in the Bill. community and the progress that is being made in the If we consider the effect of these policies on business real economy. I ask Opposition Members to get out of investment, the OBR finds that there will be no appreciable the Chamber from time to time, speak to local businesses increase in investment in the economy as a whole, or by and get a sense of what is going on and the opportunities businesses in particular, until 2018. The recovery was out in the real marketplace. supposed to be fuelled by business investment; instead, it is fuelled by consumption, and led by people getting Julie Hilling: I do go and talk to businesses, but I into debt or running down their savings as wages have wonder whether the hon. Gentleman talks to his ordinary slumped. That cannot be a balanced recovery in the constituents: the people seeking work or who are in economic well-being of our country. I also welcome low-paid work, and those using food banks or those some of the changes made to research and development who cannot afford to heat their houses. The Budget is tax credits, but even after those, this country will have not just about business, but about stopping people one of the lowest levels of investment in innovation and living a dreadful life. science, in both public and private terms, of any major developed country. The Bill should have done far more to tackle that record. David Rutley: That is a good question and I thank the hon. Lady for giving me the opportunity to respond. Of Another omission from the Bill is—oddly—the provisions course I speak to members of the public in Macclesfield on tax-free child care. They have been much trumpeted and outside my constituency, too. by the Government but we do not see them reflected in the Bill, and one can presume only that the Government intend to make them the centrepiece of what will otherwise Bob Stewart (Beckenham) (Con): It’s a great place. be a threadbare Queen’s Speech in June. If we consider the details of that policy there are worrying issues. I am David Rutley: My hon. Friend says, from a sedentary pleased that the Government at least did not continue position, that it is a great place. with their stated policy of leaving up to 1 million These are, of course, challenging times, but things are working poor people on universal credit without any improving. The reason for having a Budget that is useful assistance through the tax and benefit system to deal and important for business is that it is through business with their child care costs, particular as the child care and the private sector that we create jobs to enable tax credit was decimated by the Government in 2011. people to take care of their needs and those of their What about the sustainability of this policy? Where is families. The hon. Lady will know—as will, no doubt, the provision in the Bill to increase the supply of child Mr Deputy Speaker, although he cannot comment—that care places? As we see child care costs go up for families under the Labour Government 100,000 public sector across the United Kingdom, the cry we hear from jobs were created in the north-west over a period when constituents is about the lack of affordable places. The net new jobs in the private sector came to approximately Bill could have made progress on that, but the Government 18,000. Surely, that is completely unsustainable. simply did not meet the challenge. I believe that a Finance Bill that concentrated on Mr Kevan Jones: The neo-cons of the Conservative jobs, child care, a lower starting rate of tax and bringing party think that public service jobs—nurses or cleaners fairness to our tax system again by introducing a higher in hospitals—are somehow worth less than private sector 50p rate would have begun the job of securing a recovery jobs. I do not subscribe to that. I put it to the hon. for everyone, not just a few at the top. National debt is Gentleman that the growth in jobs he refers to was rising, long-term youth unemployment is doubling, exports achieved through spending that his party agreed to and productivity are stagnating, and investment is slumping. throughout all that time. 805 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 806

David Rutley: I think that public sector jobs are vital, Mr Deputy Speaker (Mr Lindsay Hoyle): Order. The but I am talking about the need to get the balance right hon. Member for Macclesfield (David Rutley) should between private sector jobs and the size of the state. answer the first intervention before we start on the next. That is what we are seeking to balance. On the comment I am sure that we can allow the hon. Member for North that he has made repeatedly throughout the course of East Somerset (Jacob Rees-Mogg) to intervene after the debate, I was not in this Chamber prior to the that. general election. David Rutley: Thank you, Mr Deputy Speaker, but I Mr Jones: The Chancellor was. hear a noise coming from North East Somerset, so I will give way at this point.

David Rutley: That is true, and so were the Prime Mr Deputy Speaker: Order. The problem is this. I Minister and others, but I was not. I was working in the think that the hon. Member for Macclesfield rather world of commerce and had severe reservations, like than his hon. Friend the Member for North East Somerset other Members no doubt, about the policies of the is meant to answer the intervention from the hon. Labour Government. Let us look at the results: the bust Member for North Durham (Mr Jones). that was created after the boom. We are clearing up that mess. David Rutley: I will gladly do that. Throughout the It is a pleasure to speak about the Bill, and a pleasure debate, the hon. Member for North Durham has persistently to speak about the way in which it builds on the Budget. made points that have been answered by Government Not only does it make Britain more competitive on the Members, and many of them have been incorrect. He world stage, but, crucially, it reduces the barriers to needs to focus on the work that we have done to reduce competition and consumer choice here at home. It is the deficit, which he clearly has not welcomed. vital to our residents as well as to our businesses. It is a sensible, responsible Bill from a sensible and very responsive Jacob Rees-Mogg: I am grateful to my hon. Friend Government. It is a Bill for enterprise, intended to for giving way, and grateful, as always, for your splendid rebuild trust in our economy and in our public finances, ruling, Mr Deputy Speaker. I think that the hon. Member and also to rebuild the trust that this Government are for North Durham (Mr Jones) is confusing the structural on the side of the consumer, taxpayer, the saver and, of deficit with the actual deficit. The actual deficit was course, the entrepreneur. That is necessary, because 11%, although the structural deficit may well have confidence in the economy and in the free-market system been 7%. can be regained only by increasing the power of choice and market knowledge among consumers. The crisis of David Rutley: I thank my hon. Friend for that confidence—the trauma of trust—that we inherited clarification. was a natural reaction to the failures of the Labour Government, and threatened to damage wider belief in Mr Jones: You said “the deficit”. prospects throughout the market economy itself. It was not just a market problem that we faced; it was David Rutley: I did: absolutely. In fact, as Hansard the problems of yet another Labour Government that will record, I referred to “the extraordinary deficit” that we were having to clean up. A great deal of good has had been created by the Labour Government. already come from the reversal of Labour’s policies on A budget surplus is now in our sights. We are likely to tax, and their disposition to micro-manage and, of see it in 2018-19. According to the International Monetary course, to misspend. This Government have been opening Fund—which is often quoted by Labour Members—the up the economy to transparency and to competition— UK is achieving a larger reduction in both the headline not least in banking—and putting the consumer and and the structural deficits than any other major advanced opportunities for new entrants to markets first. It has economy in the world. Unemployment is falling, growth been a long, hard road, and there is more to follow. The is up, and we have a record number of businesses and a global race is a marathon, not a sprint. We inherited the strengthening culture of entrepreneurialism and self- extraordinary deficit that many Labour Members want employment. Those are clear results from a Government to deny, which amounted to 11% of GDP between 2009 with a clear sense of direction. and 2010, but will be halved to 5.5% of GDP next year. This Bill will doubtless be remembered for years to come for the great work that it is doing to help to Mr Kevan Jones: Will the hon. Gentleman give way? promote the interests of savers and pensioners through the reforms that it introduces in clauses 39 to 43, which we will debate in Committee. David Rutley: Of course, if the hon. Gentleman will agree that it is a good thing that we have been able to reduce the deficit to 5.5% of GDP. Bob Stewart: I think my hon. Friend will agree with me that the Bill will also be remembered because, apparently, it gives £700 more to everyone in the country. Mr Jones: If the hon. Gentleman reads the OBR report published in, I think, March 2012, he will see David Rutley: Certainly, very important steps are that the figure was 7.7%, not 11%. I think that he being taken, such as raising personal allowances, which should get his facts right rather than constantly regurgitating will help all our constituents who are facing challenging figures as if they were fact when they are clearly not. times. However, there are also measures in the Bill that will help businesses to create more work and more Jacob Rees-Mogg: I think that the hon. Member for wealth, and help us to achieve greater growth and North Durham (Mr Jones)— prosperity. 807 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 808

Returning to clauses 39 to 43, the Chancellor has That will create the jobs we want to see and tackle the championed the consumer’s right to take decisions in challenges of youth unemployment that Opposition accordance with their own life circumstances, over and Members have mentioned. Yes, we have had to consolidate above the procrustean desires of the state. Much has the nation’s finances, but we have also signposted clearly been said about these reforms, and no doubt plenty the future direction of lower taxes. Although cutting air more will be said in the days and years ahead, but I passenger duty, for example, has not been affordable in want to focus today on how other clauses in the Bill are recent years, the Bill will very generously cut the two equally supportive of consumers by bolstering competition highest rates from 2015. This Government do not shirk and lowering barriers to entry for British enterprise—clause from the difficult decisions that need to be taken to 10, on capital allowances, clause 6, on corporation tax, restore order to the national balance sheet. It is precisely and clause 73, on air passenger duty, to name but a few. this approach of taking long-term decisions that has Encouraging new entrants—those first-time entrepreneurs, allowed us to double investment allowances to £500,000 employers and exporters—is vital in increasing choice and to cut APD, which we have been able to do responsibly for consumers and in keeping established businesses and affordably. I hope that business will respond by on their toes and responsive to their customers. This investing in export potential and taking advantage of Government have slashed barriers to entry through lower flight taxes to get out and sell to the world. The deregulation initiatives—an ongoing process that I have barriers are down, and the pathways to achieving export been involved with on the Deregulation Bill Committee— potential are getting clearer. That is a clear priority of and there is also the red tape challenge and the one-in, Members on this side of the House. two-out regulatory arrangements. These are important We are moving forward with corporation tax, too. steps in creating much-needed supply-side reforms. Cutting it to the lowest level in the G20, the Bill will I hope to contribute further on the Finance Bill further improve our competitiveness in the international Committee—if I can catch the Whip’s eye—because the market. The new employment allowance will slash the barriers to small new businesses, new employers and cost of taking on a first-time employee. These are new exporters have been kept far too high in the previous pro-enterprise, pro-competition measures that will create decade or more. We need to get on and finish the job long-lasting benefits for the economy, for jobseekers and create a real enterprise pathway. There is little point and for our consumers. By making it easier and less in trying to address the problem of firms that are too expensive to deal with the state and to pay its taxes, the big to fail if we do not also seek to address that of new Bill also makes it easier for first-time entrepreneurs to businesses that are too small to succeed against barriers become first-time employers and first-time exporters. to entry that have been in place for far too long. This The Chancellor has promised to do all he can to Bill helps us to take significant strides forward. In the boost our export performance. The CBI has noted that words of the British Chambers of Commerce: the increasing export finance stream announced in the “By making a better business environment his top priority, the Budget should “strengthen our armoury”, although it Chancellor has recognised that successful and confident companies also agreed with something that Lord Young and Lord are the key to transforming Britain’s growing economic recovery Green have already acknowledged, when it stated: into one that is felt in homes and on high streets.” “The Government must now work much harder to promote It is the economics of strong, long-term measures for these schemes, since many fast-growing firms are unaware of the long-term growth. support available.” I know that the Government are acutely aware of that Ian Swales: The hon. Gentleman is making a very fact, but it is critical, now that we have the plans in good speech. As somebody who represents the north-east place, that we do a better job of communicating with corner of north Yorkshire, which is part of the north-east SMEs and telling them what support is available. region, I am sure I can join in the north-east theme this When customers are free to choose, businesses are afternoon. He talks about the drive to improve businesses. required to innovate, to offer better service and to Does he agree that it is only through successful wealth control their prices. When the state stands in the way of creation that we can provide the public services that that market competition, prices are skewed and, in the Opposition Members—and all of us—want to see? longer term, the economy deteriorates. We have only to look across the channel to see where that path could David Rutley: Absolutely. Real growth and true wealth lead—to plan B, as we might say—and to see what that creation have to come from the private sector: that is strategy has delivered for France: rising unemployment how we generate the wealth needed to provide the and a budget deficit higher than had been predicted. We public services that Members on both sides of the do not need to look across the channel to learn who House welcome and want to help our constituents. would bring similar economic woes to Britain; we need The Institute of Directors has described the Budget only to look across to the other side of the House. measures in the Bill as “responsible and imaginative” Thank goodness that we on this side of the House chose ones that will to stick with the right plan. We now want to finish the job. “promote growth, exports and investment”. I was fortunate to attend the British Chambers of It says that Commerce annual conference this morning. It was a “doubling the annual investment allowance…will bring forward a positive start to what I am sure has been an excellent significant amount of investment…with knock-on effects across day for chambers of commerce across the country. The the economy”, theme was “State of the nation—good to great”, while highlighting the need for what was called “great growth”— “increasing the cash value of Research and Development credits…will growth that is sustainable and for the long term. It was benefit many new businesses immediately”. a timely reminder of the most pressing economic priority 809 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 810

[David Rutley] because of what happened during their first few days, including the measures on investment, which my hon. facing the country. I am proud that this Government Friend the Member for Nottingham East (Chris Leslie) are firmly committed to meeting that challenge head mentioned. What the Government did sucked money on. The Budget and the Finance Bill are both further straight out of the economy, so demand went down. We evidence of that commitment, and that is why I will have had the longest recession and recovery in history. support the Bill tonight. On the Conservative party’s and the Chancellor’s own figures—these are not my figures or the Labour party’s—by now we should have seen 8.4% growth, whereas we have 5.32 pm actually seen 3.8% growth. We were supposed to have Mr Kevan Jones (North Durham) (Lab): The hon. got rid of the deficit by 2015, but we are actually Member for Cities of London and Westminster (Mark borrowing another £190 billion more than we were Field), who is unfortunately no longer in his place, said planning to borrow. that the Budget gave him a feeling of “upbeat optimism”. That is the Chancellor’s supposedly successful plan. We have also just heard the hon. Member for Macclesfield People would think that he would apologise for that, (David Rutley) say that we should all be smiling, as though but that is about as likely as the hon. Member for North the Budget were to be the salvation of our nation. The East Somerset (Jacob Rees-Mogg) walking into the Conservative party will clearly go into the next election Chamber wearing a pair of Wrangler jeans. The fact is using “Happy Days Are Here Again” as its theme tune. that the Chancellor’s plan has not been working, with the root cause—the Liberal Democrats have been going Jacob Rees-Mogg: The hon. Gentleman will recall along with this—being an ideological Conservative party, that “Happy Days Are Here Again” is traditionally a which is not just about deficit reduction, but is actually Democrat theme tune. I think it unlikely that the about small state Conservatism. The headlines in last Conservatives would borrow from the left in America. week’s Budget were clearly designed around things such as the pension measure, which I will discuss in a moment, Mr Jones: I would not put anything past the new but tucked away were another £1 billion of cuts, which Conservative party, although I know that the hon. the Chancellor made permanent for future years. So Gentleman is part of the ancient—even prehistoric— that is more pain for Departments across Whitehall and Conservative party. It is clearly part of the Conservative communities across our country. party’s strategy to try to give the impression that we have turned the corner and that the sunlit uplands are The Budget headline was clearly on pensions, and now before us. The public are neither so stupid nor so much has been said about the freedoms the measure is naive as to believe that, however, because they are living going to give. I do not usually agree with the hon. the reality of what this Government are doing to this Member for Watford (Richard Harrington), but he great nation of ours. made some interesting points in his contribution and I share his fear about people’s ability to get proper financial Ian Swales rose— advice about what to do with their pensions. I take his point that we are dealing with relatively small sums in Mr Jones: I will give way to the “Conservative” terms of pension pots of £20,000 to £25,000 and the Member for Redcar (Ian Swales). costs of giving that advice would be astronomical. Are we, however, going to avoid the chaos we had—many of Ian Swales: I thank the hon. Gentleman for giving us remember seeing it in the 1990s—when the vultures way. The North East chamber of commerce said recently descended on workplace pension schemes, advising people that its members’ business outlook was the most positive to take money out and put it into all sorts of products, since 1995. Does he disagree with that? I accept that which led to people making bad investment decisions? business is not everything, but surely he can welcome that. The Minister of State, Department for Work and Pensions, the hon. Member for Thornbury and Yate Mr Jones: I have great respect for the North East (Steve Webb), who is responsible for pensions, says that chamber of commerce, but it represents only a certain he is not really bothered if someone wants to go and section of the business community—it does not represent blow it all on a Lamborghini. Hon. Members might not all the business community—and I have never seen it be surprised to learn that I do not know a great deal disagree with any Budget, because, understandably, it about Lamborghinis, but I was a bit disappointed that likes to keep in with the Government of the day. The he did not use an example of a British car, because it “Conservative” Member for Redcar is clear in giving an would have been a good idea to boost the British upbeat assessment of his own constituency, but it is not economy if he really wanted to give an example of an one that I recognise and neither do many Members expensive car. Today, I looked up the cost of the cheapest representing north-east constituencies. Lamborghini and found that it is £300,000—that represents The hon. Member for Macclesfield said that the quite a big pension pot. The problem arising out of that Government had a clear sense of direction and the hon. policy is that the Government have not published the Member for Dover (Charlie Elphicke) said that they modelling on what the effects will be on the public had a clear plan, unlike the Opposition. Let us look at purse. They need to do that because hidden issues need this clear plan and sense of direction. The narrative goes addressing. It is right to give people choice and freedoms, as follows, and before any Government Member says but the Chancellor did nothing at all to affect the charges, differently, these things are not invented by the Opposition; fees and so on that small pension pots are attracting, they are what this Government did when they came into which can be substantial, not only at the time of buying power. We should recall that in 2010 our economy was an annuity, but over the lifetime of the pension. That actually growing. Why did it go into recession? It did so would be a thing to do. 811 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 812

I have serious concerns. For example, if a pensioner commitment on tuition fees. Remember the VAT uses their £300,000 plus to buy a Lamborghini—or bombshell? It was the first thing they did and the possibly a Bentley, which would at least boost jobs in Liberal Democrats could not even claim at that stage this country rather than in Italy—what do they do when that they had been affected by Stockholm syndrome, as they have no money left? The Pensions Minister says, they were only in the early days of captivity. And what “Well, that’s fine because it has all been taken care of by did they do? They increased VAT. The hon. Member for the new generous state pension.” He forgets that there Redcar says that the increase in VAT is a progressive are other things. There is no mention, for example, of form of taxation. I am sorry, but it is not. All the care costs or of housing benefit. Those things need to indications show that it is a regressive form of tax that be explained. It helps the Chancellor; he has a figure in hits some of the poorest in our communities, including the Red Book for the amount of tax he will raid out of in Redcar. pensions in the short term. There will clearly be a boost if people spend their money in the economy. I am not Ms Margaret Ritchie (South Down) (SDLP): Is my usually a great fan of the Association of British Insurers, hon. Friend aware that in Northern Ireland we have a but a serious issue has been raised about the future of particular problem with VAT and our land border with the annuities market. Insurers do not just get in money the Republic of Ireland? Our VAT is levied at 20% for and sit on it; they invest it, so we are talking about long- tourism products and in the Republic of Ireland they term investment that is being taken out of projects and have been able to retain it at 9% as of today. They also businesses. To make a full assessment of the effects of this have air passenger duty at 0% from today. move, we need to understand the modelling of the scheme, and that has not been forthcoming. It will be interesting Mr Jones: I agree. Some particular issues that appertain to see whether the Government will produce it. to Northern Ireland need to reflect the common land The other issue is the increase to £15,000 a year in the border with the Republic of Ireland. allowance for individual savings accounts. Like the hon. As we have heard several times this afternoon, the Member for Macclesfield, I speak to my constituents. It Liberal Democrats are trumpeting as a great thing is laughable to suggest that they may have £15,000 lying the fact that we have increased the personal allowance. around to invest each year. I think that most people are The people who gain from it most are not the poor but in the same position. As my hon. Friend the Member those on middle incomes. MPs—quite apart from some for Glasgow North East (Mr Bain) said, people are not Government Members who earn a lot more than their investing the money; they are actually spending it to live parliamentary salaries and who will gain even more—will in their old age. Some 8 million people in this country gain more than the low paid. have no savings whatever, and another 32% have less than £1,000 in savings, so the proposal will not help Jacob Rees-Mogg: The hon. Gentleman must bear it anyone. It may help some who have £15,000 to invest. in mind that nobody gains more than the £700 and that Should we welcome that? Possibly, but the idea that it in the early stages the higher rate taxpayers were not will help most of my constituents, or most of the included in the increase in the lower rate threshold. It constituents of my hon. Friends, is frankly not right. was clawed back from them, so what he says about MPs On Saturday, when I was out at an event in Chester-le-Street is actually not correct. in my constituency, someone said to me, “Who’s got £15,000 lying around to invest in that type of savings Mr Jones: I was referring to some of the hon. plan each year?” Gentleman’s colleagues and I do not know whether he When the Chief Secretary to the Treasury opened the is included, as I did not look up his figures. The right debate, my hon. Friend the Member for Nottingham hon. Member for Wokingham (Mr Redwood), who was East said that he was suffering from Stockholm syndrome, in the Chamber earlier, earned £213,000 last year on top because he has actually become part of the Conservative of his salary. He will therefore gain from the tax cut that party. Indeed, having heard the speech and the comments the Government have given him. The Conservative Member of the hon. Member for Redcar (Ian Swales), I think with the highest figure earned something like £800,000 that he also has a very bad dose of the syndrome. a year. I asked the Chief Secretary at what point in the VAT, the cuts to housing benefit, the bedroom tax previous Labour Government did his party say that and the changes to tax credit have all affected those spending was too high. I then gave him another chance individuals. My hon. Friend the Member for Glasgow and asked him whether the Liberal Democrats had North East also mentioned national insurance, which called for reduced expenditure in any area—whether it affects those who are on very low pay. As for the idea be in the NHS or anywhere else. There was not one single that the increase in the personal allowance is somehow area. At least the Conservatives could say that they a great gift to the low paid, it is, as somebody said ditched the pledge around 2008-09. The Liberal Democrats earlier, simply about giving with one hand while taking kept going right into the last general election. To hear away with the other. the hon. Member for Redcar now, we might think that One missed opportunity in this Budget is that of he had long been there calling for fiscal responsibility putting investment into our economy.Clearly, the narrative and less expenditure. The Liberal Democrats may trumpet is about a small state and the Conservative party wants it now, but that was not the case back then. as small a state as possible. The view expressed by the The Chief Secretary to the Treasury said that he was hon. Member for Macclesfield gave the game away and proud that the increase in allowances was straight from that is, basically, that the only people who create wealth the last Liberal Democrat manifesto. It might have been, in this country are entrepreneurs and business, that but the commitment on VAT—he was challenged about somehow public expenditure is a bad thing and that what happened to that—went the same way as the spending money on services does not create any wealth 813 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 814

[Mr Kevan Jones] be saved by cutting down on pot plants or the fripperies, that is not possible. It has to be done by cutting back on at all. In the early days of this Government, the one services and people. thing that sucked more money out of the economy than As if that was not bad enough, there is more to come. anything was the cuts to public services and local councils. In the Budget and as part of the process, Durham Councils do not sit on money, they spend it in their county council will now lose another £13 million. Gateshead local communities. I know that many small businesses, council will lose nearly £8 million. Newcastle city council including one small building company in Chester-le-Street, will lose a further £14 million. South Tyneside will lose nearly went to the wall because their main contracts £7 million and Northumberland nearly £4.2 million. were with the local authority. That will take money out of the economy and redistribute The hon. Member for Redcar used a comparison it to those in the south. The cut per dwelling in South with maxing out credit cards, but the idea that the state Tyneside is £101.50. In Sunderland, it is £90.45. Meanwhile, is like an individual’s personal bank account is complete Wokingham—people will think I have a thing about nonsense. Clearly, if the state invests in infrastructure Wokingham—has an increase of £55, and Surrey an and other things, we get growth in the economy. increase of £51. The hon. Member for Redcar, the great champion of the north-east, is voting for these things, Philip Davies (Shipley) (Con): On a point of order, redistributing money from the north and north-east to Mr Speaker. I hope the hon. Gentleman will accept my the south of England. That is having an effect in terms apology for interrupting his flow. When I opposed the of jobs. ten-minute rule Bill earlier today, I had intended to start The hon. Member for Macclesfield might think that by referring Members to my entry in the Register of public sector jobs are not important, but I tend to think Members’ Financial Interests. Having read Hansard,it that they are. When one needs the NHS, people must be appears that I failed to do so, so I wanted to come to the there. When home care is needed from a local authority, House at the first opportunity to correct the record and people must be there. If there is no money and deprivation refer Members to my entry in the Register of Members’ indices have been removed, not only are those services Financial Interests. That is my purpose in doing so now; being removed, but money is being taken from the local it was not intended to interrupt the hon. Gentleman’s economy. That will have an impact on exactly the flow. businesses that the hon. Gentleman argued earlier we should be supporting and growing. Mr Speaker: I am grateful to the hon. Gentleman for that point of order. His courtesy in the House is well David Rutley: The record will show that I did not say known, as in general terms is his interest in the sector that public servants do not do a useful job, because I concerned. His omission was inadvertent and he has think that they do. Where do the interests of the taxpayer put the record straight at the first opportunity, and I fit into the hon. Gentleman’s world, because I have not thank him for doing so. heard that mentioned in anything he has said? He seems to think that money grows on trees, rather than coming Mr Jones: The hon. Gentleman has not broken my from taxpayers. flow, but I thank him for the little breather to give my larynx a rest. Mr Jones: The hon. Gentleman’s naive and simplistic If one follows the logic of the hon. Member for approach is that the only way to grow the country’s Macclesfield, business should not get any subsidies economy is to sit back and wait for the great entrepreneurial whatever. But we all know that that is complete nonsense. spirits he talks about to grow up, as if by magic, and The Government are now increasing investment allowances, rescue the economy. Governments have a role to play in but they cut them in 2012. We are now told that this is a generating economies and delivering good, local public great achievement of the Budget, but we are only back services. The idea that Durham county council, or any to where we were in 2012. council, sits on that money is ridiculous; it spends the I am seriously concerned that we have a two-speed money in the local community, as do the people who Britain. We have a housing market that has clearly been work for it. It should come as no surprise to anyone—it stoked in London and the south-east, and we have a might to him—that taking money out of an area, stagnant north. The hon. Member for Hexham (Guy including the spending power of local authorities, public Opperman) described Hexham, which is a nice constituency, services and local people, will have an effect on private and the north-east, but he is living in some type of businesses, whether shops or services, because people parallel universe if he thinks that the north-east economy do not sit on their money at home; they spend it in their is booming. Well-paid jobs in the public and private local communities. sectors have been replaced by low-paid zero-hours contracts. Four out of five of the new jobs that have been created David Rutley: Whose money is it? It is not the state’s are low-paid and in the service sector, not in the long-term or the council’s. It is the taxpayer’s money, and there is a sectors. Added to that—as a north-east Member the responsibility to spend it wisely. hon. Member for Redcar is voting for this—is a movement of the limited public finance that there is from the Mr Jones: I totally agree. The hon. Gentleman should north-east and other areas to the south. For example, look at my record on Newcastle city council, because I we have already seen the record level of cuts in public always ensured that we got value for money. But there is expenditure for councils in the north-east. Durham a big difference between getting good value for money county council has lost 40% of its budget. Contrary to for the taxpayer and his suggestion that local authorities what the Secretary of State for Communities and Local and public services spending money will somehow not Government says, that somehow 40% of a budget can have an effect on local economies. It should come as no 815 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 816 surprise to anyone that taking money out of people’s generation of young people. They have no opportunity pay packets, whether in local councils or public services, for a job, not only in the short term but in the longer will have an impact on private sector jobs in local term. Why is that important? If someone meets us for communities. the first time, they usually ask us two things: our name and what we do for a living. Some people cannot answer Jacob Rees-Mogg: The point that the hon. Gentleman the second question about a fundamental part of who is missing is that the money that is taken out of the they are. Some say that there are lazy people, but I am taxpayer’s pay packet is tax in the first place, so this is sorry—there are hard-working people struggling to make merely changing the money from being spent in one ends meet. part of the country to being spent in another; it is not I will give two examples from my constituency. I met creating new money. someone on a zero-hours contract working in a store, which I will not name, in the Metrocentre—that great Mr Jones: I disagree. Were we to build a new motorway cathedral to Thatcherite free market enterprise. or railway line, such as HS2—I am sure that the hon. Gentleman is a great advocate of that vanity project—the Ian Mearns: In Gateshead. increased speed with which people would be able to move around and do business would have an impact, so Mr Jones: In Gateshead. This 17-year-old on a zero-hours it cannot be said that that will not have an effect. We contract, who lives in Stanley, told me that he turned up come back to the idea that somehow Governments at the Metrocentre one morning only to be told that cannot have an impact on what is happening. there was no work and he should go away. He had paid Last week my hon. Friend the Member for his bus fare to get there, went back home and was then Middlesbrough (Andy McDonald) raised with the Prime rung up to be asked back for two hours that afternoon. Minister the disproportionate amount of money spent If he said that he could not do that, he would be on transport in London, compared with the north-east. sanctioned as one who was not trying hard enough. As Interestingly, the Prime Minister rattled off four transport was said eloquently earlier, for the Government the projects that he claimed this Government had delivered issue is a job at any cost. That man was getting out of for the north-east. He was very confident about his bed every morning to try to work. facts, which did not surprise me, because his public I met another young lad in Stanley last week. He had school background means that he can be very confident applied for well over 150 jobs and been on umpteen even when talking complete nonsense—it does not really courses. The scandal about the Work programme is that bother him, because that is the way he has been brought the Government are lining the pockets of private sector up. He mentioned the Tyne and Wear Metro and the suppliers. This lad was desperate. He said he wanted to Tyne tunnel—I cannot remember what the third and set up his own business. I am sure that Government fourth projects were. They were all agreed by the previous Members would think, “Brilliant! This great entrepreneur Labour Government. In fact, the Tyne tunnel was finished needs to go forward.” He went to the jobcentre to ask before this Government came into office. The idea that for assistance in getting his driving licence. They told this Government are somehow leading on those big him no, although they could send him on a course to do infrastructure projects, which are desperately needed in everything else. That is the trap for some of these young the north-east, is ridiculous, because clearly they are people. There is no hope for them and they feel neglected. not. The issue goes further than that. The older generation Housing is an issue that could be completely missed look at their grandsons and granddaughters and see no in the Budget. The way forward is clearly to encourage hope. We needed hope in the Budget for those young people to buy their own homes, and I have no problem people, but there was none. We need to give them hope. with that, but if someone is in low-paid work on a Labour has a commitment to get people into work. The zero-hours contract, and possibly having to work two hon. Member for Dover was disparaging about the part-time jobs, as many people do, the idea that they previous Government’s attempts to do that, but it is will ever get the credit worthiness to own their own important to get people into the ethos of work, because home is complete nonsense. What we need, certainly in not having that place in the world is difficult. People can the north-east and in my constituency, is affordable get into a cycle and give up hope. housing for rent. The easy thing that the Government The young people I meet in my constituency are could do—it would not cost them any money—is give working hard and trying. As I said, some are treated housing associations the borrowing requirements they like hired help—paying out of their own pockets to get need against their assets to build houses. The Government to work and being told to come back later when there could do that, but they are not. Instead, they are might be hours. That may be the type of society that the creating an artificial bubble in the housing market. Liberal Democrats and Conservatives want, but I do Look at the difference between the north-east and the not. The next election must be about a very clear south. Prices in the north-east are still £5,000 lower message not only about standards of living but what than in 2008; in London and the south-east, they are type of society we want to live in. Do we want to live in 77% higher. Ridiculously, housing is completely a society where people are on zero-hours contracts with unaffordable for most people in London and parts of uncertainty about whether they are going to get work, the south-east, with average house prices of £400,000. and youngsters are not going to improve their life Even people with reasonable standards of living find it chances as others did? The hon. Member for Macclesfield hard to buy a house. talked about a global race—well, it is. This Government I turn to youth unemployment, one of the great have a clear policy: a global race to the bottom. This is tragedies of the Government. I fear that there will be a not the high-skilled and forward-looking country that I repeat of what we saw in the 1980s—a completely lost want to live in. 817 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 818

[Mr Kevan Jones] we know that we are competent. Indeed, Labour is desperate that the OBR should view its own figures. An As my hon. Friend the Member for Bolton West independent body was set up to give these forecasts so (Julie Hilling) said, if we are the sixth richest country in that there was no legerdemain in what the Chancellor the world, it is a scandal that people who are not sat idle was doing. but going out to work are reliant on charity to live and put food on the table for their children. That makes me Sheila Gilmore: If those were the forecasts of the very angry. This is not the society I want to live in. The OBR, based on the position as it saw it in 2010, does the Budget does nothing for those people. In areas such as hon. Gentleman agree that it must be the Government’s the north-east—the hon. Member for Strangford (Jim policies thereafter that have meant that those forecasts Shannon) mentioned Northern Ireland—there needs to have not translated into reality? be a clear plan for getting those regions working again: a new deal that has real investment behind it as regards Jacob Rees-Mogg: That does not follow. It is like infrastructure and making sure that young people have looking at the weather forecast on the BBC and saying the opportunities they need. that it is the fault of the newsreader if the weather then Next May, I will make sure that I always remind turns out to be different. The two are not the same. The people of one thing: that not a single one of this forecasts were made in good faith, based on what was coalition Government’s horrendous, horrible policies, known of the global economy at the time. But of with the torture they have inflicted on many thousands course, things change and responses are different. The of our citizens, as we expect from Tories, could have global economy continued to be relatively sluggish, but been introduced without individuals such as the hon. the figures that have been achieved by the Government Member for Redcar and other Liberal Democrats who are enormously respectable. There has been economic have voted for them all. growth pretty much since 2010 and, most importantly, in the past couple of years. Everyone knows that economic 6.6 pm policies have a long-term impact. If a Government come into office in May 2010, we cannot expect the Jacob Rees-Mogg (North East Somerset) (Con): It is figures in June 2010 to be the result of that Government’s an enormous pleasure to follow the hon. Member for policies—there is inevitably a lag. The effects, as we North Durham (Mr Jones), who always entertains the have seen, have been positive; the economy is now House with his eloquence. I am sorry that he has been growing, and growing increasingly strongly. relatively brief today. On previous Finance Bills, he has held forth for over an hour, and I was hoping for The problem that the Government faced when they something similar. came into office was severe. The deficit in 2009-10 was The hon. Member for Glasgow North East (Mr Bain) 11.2% of GDP, falling to 10% of GDP in 2010-11. That started with a list of anniversaries, but he was remiss in is not the structural deficit but the actual real money not mentioning that today is the anniversary of the deficit. I happen to think that is a much better figure death of Eleanor of Aquitaine, which I happen to think than the structural deficit, which is to some extent is rather more interesting than the anniversaries he was speculative, as economists try to work out what is able to provide us with. structural and what is not. If we deal with actual fact, the figure was minus 11.2% in the last year of the It is a great pleasure to support the Government on socialists, falling very slightly to minus 10% in the first this Finance Bill. It is worth looking at some of the year of the coalition. figures that have been batted back and forth during the debate, some of which seem, to some degree, to have The reason the deficit was so high was of course in been invented by the Opposition. The real figures show part the global financial crisis, but it was also because that the Government can be proud of their record. Let Government spending was simply too high. It had me run through them, if I may. They are a mixture from reached 47.4% of GDP in 2009-10, when revenue was the World Bank and the Red Book. GDP declined by only 36.2% of GDP. That latter figure for tax revenue 0.8% in 2008 and by 5.2% in 2009. I think that some ought not to be any surprise. One of the most remarkable people may have missed that downwards revision by the things about this series of figures, going right the way Office for National Statistics. GDP rose by 1.7% in back to Harold Wilson’s prime ministership, is that 2010, by 1.1% in 2011, by 0.1% in 2012, and by 1.8% in Governments find it incredibly difficult to get much 2013. The key to those figures is that since this Government more than 37% of GDP in taxation. It is interesting have been in office, there has been no triple-dip or that, since 2010, although the Government have increased double-dip, as was predicted; in fact, the economy has taxation and the tax take has gone up from 36.2% to grown because the Government have followed the right 37.4%, the amount has not risen as much as was anticipated. policies. The reason is that it is actually very hard to tax much more than 37% from an economy. Sheila Gilmore: Did the hon. Gentleman feel that the predictions that the Chancellor gave to this House and Kelvin Hopkins (Luton North) (Lab): In Scandinavia, the public in 2010 and 2011 were over-optimistic, or did tax receipts in previous years have been much higher he think they were okay? I seem to recall that the than 37%. Chancellor was not predicting that level of growth. Jacob Rees-Mogg: Indeed they are in France as well, Jacob Rees-Mogg: The hon. Lady is aiming at the but in our economy there seems to be a resistance at wrong target. The Chancellor, in his considerable wisdom, about that level. It is almost unprecedented to get much decided to make these forecasts independent and therefore over 38%. That has been managed in two years out set up the Office for Budget Responsibility. That is how of the past 40. That may tell us something about our 819 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 820 society, about the willingness to pay tax and the incentives Jacob Rees-Mogg: Without being too hard on that when tax rates are set. A realistic Government therefore specific case, I am clear that some of the cases reported need to think of public spending levels of around 37%, as tax avoidance were tax evasion, and HMRC has which is the level that can actually be afforded through taken on some of them successfully. I absolutely agree ordinary taxation. that it is right for HMRC to challenge schemes to see whether they are, in fact, evasion. Most of the schemes Kelvin Hopkins: Does the hon. Gentleman know how that gave extraordinary results seemed to be evasion much of that situation is due to the abolition of exchange rather than avoidance, but we must remember that, day controls when Mrs Thatcher first came into office, and by day, honest people avoid tax that they are not required the fact that we now have an enormous tax gap because bylawtopay. of tax avoidance and tax evasion, much of it overseas? Kelvin Hopkins: I thank the hon. Gentleman for Jacob Rees-Mogg: The calculation from the removal giving way yet again. The big losses from tax avoidance of exchange controls is not one that I know or would be and evasion are to do with the corporates. The cosy able to make. The effect of their removal has been to relationship in recent years between HMRC and some create a much larger economy for the United Kingdom, of the corporates, particularly Vodafone, is appalling. I so we are talking about 37% of a larger pie rather than am sure the hon. Gentleman would like to talk about getting a higher rate in a closed economy. However, it is that. worth bearing in mind that in the years before exchange controls were lifted in 1979 we still were not getting a tax take of more than 38% of the economy. The series Jacob Rees-Mogg: I am grateful to the hon. Gentleman goes back longer than the abolition of exchange controls. for that intervention. The thing about corporation tax is I part company from the Government to some degree that a lot of corporations can be taxed almost anywhere on the question of tax avoidance and tax evasion. It is in the world. That is why I think the Government are measurably important not to elide the two. Tax avoidance absolutely right to bring down the rate of corporation is perfectly legal—indeed, the Government come up tax. It will help businesses to be headquartered in the with schemes in every Budget to encourage it. One United Kingdom, which is good for the UK in terms of example is saving for pensions—that is tax avoidance on employment and, indeed, tax revenues, by which I mean people’s income. ISAs are a form of tax avoidance, as is not just corporation tax revenues, but the other tax duty free. In the Budget and the Finance Bill there are revenues paid by companies, namely business rates and schemes for investing in films and television programmes employer national insurance contributions, as well as that actively encourage tax avoidance. Such schemes the taxes paid by their employees. We get a larger, more become part of Government policy for growing the successful economy if we are relatively generous to economy. corporates. Governments then get very upset when people use the Northern Ireland Members have spoken of the particular tax avoidance schemes, which the Government themselves circumstances there and the competition Northern Ireland have put into legislation, for purposes that the Government faces from the Republic of Ireland. That is a very good had not thought of. That strikes me as a fault of the case of tax competition between neighbours and it can legislative process and an incompetence of the legislators—I be seen very bluntly in Northern Ireland because of the am sorry to say, Mr Deputy Speaker, that it is our land border. We see less of it on the mainland of the fault—for allowing such loopholes. It is not the fault of United Kingdom because we do not cross borders quite the taxpayer for using them. Any sensible, intelligent so easily and we do not necessarily focus on it as much taxpayer will pay the minimum amount of tax that is as we should. I think that the Government are absolutely legally required. To elide avoidance and evasion is, I right on corporation tax and that they should continue think, against the rule of law: it undermines the rule of down that line. law by pretending that something that is innocent is The Government have also been right on the raising nefarious. of thresholds and I hope they will continue with it. It It is important to crack down on tax evasion, which is makes sense, as my hon. Friend the Member for Redcar rank criminality, but the Government should not take (Ian Swales) has said, because it is not logical for people excessive measures against that which is legal. Instead, on the minimum wage to be paying taxes. There is no they should write simple tax law because, to go back to point in taxing people who are low earners merely to the point I was making, Governments manage regularly pay them benefits with their own money. Although it to raise 37% of GDP in taxation almost regardless of was a Lib Dem policy in the last election and they the taxes they levy—they change a tax here and a tax deserve credit for that, it was suggested earlier by Lord there, but still get roughly 37% of GDP. Simple tax laws Saatchi and Peter Warburton in a booklet they produced can probably get us to that level without the need for for the Centre for Policy Studies. The Conservative complex anti-avoidance legislation that undermines the antecedents of the policy are pretty good and solid. It is rule of law. That is the one part of the Bill about which I a Tory policy in origin and it ought to continue. have my doubts. The aim of the Government in the long run should be that people on the minimum wage should pay neither tax Ian Swales: The hon. Gentleman is making a nor national insurance. In that way, the amount of benefits characteristically fascinating speech. Does he agree that that needs to be paid to them will be very significantly the difference between tax evasion and tax avoidance reduced, as will the administrative burden. Roughly needs to be made very clear? For example, those who speaking, tax collection costs 1% of the amount collected, pretend to be second-hand car dealers in order to avoid and benefit payments cost about 2% of the benefits tax are actually evading tax. paid out, so if we tax people to pay them benefits, the 821 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 822

[Jacob Rees-Mogg] nanny state, the socialist state or the “Let’s tell you what to do” state that had taken charge. For that, we should overall cost will probably be about 1.5% of the total rejoice at the Budget and the Bill. amount paid and received. The policy is very good and welcome. 6.23 pm Another policy that must be welcomed is the change Sheila Gilmore (Edinburgh East) (Lab): I cannot help to pensions. Questions about pension funds came up but feel that the speech by the hon. Member for North when my right hon. Friend Chief Secretary to the Treasury East Somerset (Jacob Rees-Mogg) was very much in the spoke. What the Government are doing is very simple: vein of Marie Antoinette—“Let them eat cake.” Many they are allowing people to keep their own money. That people find it positive that we redistribute money and is not very popular among Labour Members, who seem help those who need assistance in our society, but the to have the view that it is the Government’s money and logic of his argument is that we should revert to a should be distributed as they, rather than individuals, position in which it does not matter if some people wish. Conservative Members and, indeed, Liberal cannot afford education or to have a decent roof over Democrats who still have some residual liberal attachment their head, because they are still looking after their own believe that the money belongs to the individual taxpayer. money, even if the amount is very limited. That might The policy has a very clear advantage for the tax be because of their health, because of their disability or authorities, because it clarifies the idea that pension because the opportunities that they have grown up with saving is nothing but a tax avoidance boondoggle. It is are not as great as those of others. In his view, that is about taxing people once, rather than twice. People are fine and we should go back to that kind of society. I, for taxed when they withdraw the money from their pension one, do not want to do so. fund, with a 25% exemption, rather than taxed when We were told that this was a Budget for savers. The they put it in. It is worth bearing in mind that if that problem is that, for many people in this country, the was at any point reversed, the withdrawal would be figures that were talked about are fantasy. They will taxed as a capital gain rather than as income, and the never be in a position to benefit. We have to care about rates that applied might be very different from those that. A study by HSBC in October 2013 stated that 25% that currently apply to withdrawals from pension funds. of households had no savings. That was up from 19% in Any Government who intend at any point—whether at a similar survey that it carried out 2012. It also stated the higher or the lower rate—to withdraw the benefits that 10% of households had less than £250. That means of saving through a pension fund should consider the that 8.8 million households—not individuals, but ultimate pay-out, and how the policy is a fair means of households—to all intents and purposes have no savings. taxing people and ensuring that they are not taxed more One of the first things that the Government did on than once. coming to office was to abolish plans for the Saving As my hon. Friend the Member for Dover (Charlie Gateway, which had been put in place by the previous Elphicke) said, this was a “steady as she goes” Budget. Government, and abolish child trust funds. One of the It is very impressive. The Government have not gone for first Public Bill Committees that I served on took away cheap gimmicks, as parties sometimes do before elections; those things, which were there to encourage and assist they have gone for continuing the work, which they people who did not have a great deal of disposable started in 2010, of getting the country back on track. income to save. Clearly, those savers are of no interest They are doing so in a way that benefits the least to the Government. The people who will benefit from well-off in society the most. It is absolutely striking that the increase in tax-free saving through ISAs are in a the real incomes of every decile other than the highest-paid minority in this country. decile will rise by more than prices this year, as they did I listened to what the hon. Gentleman said about the last year. tax threshold. There is an illogicality in taxing people That Government achievement is helping where help who are on the minimum wage. The problem is that the is most needed: it is helping business to allow it to increase in the tax threshold has not benefited people in invest; doing more to help exporters; helping to rebalance that situation. It has gone right past many taxpayers and the economy for the long term; and—gloriously, splendidly it has cost a great deal. We are lectured endlessly about and rejoicingly—it is doing something to ensure that there not being enough money and about tough choices people have their own money. What a fine Conservative having to be made, but £10 billion has been spent to principle that is. We believe that the individuals and date—not including the further increase in this Budget—on their families who build up society have the greatest raising the tax threshold. That is tax that is forgone. wisdom about how they spend their money, not the tax Three quarters of the benefit has gone to people with authorities that dish it out. What is being done with above-average earnings, not those on low earnings. pensions is the clearest statement of that. Yes, if people The 17% of the population who are already beneath buy Lamborghinis, Bentleys or Porsches, they will spend the tax threshold are gaining nothing. Government it unwisely— Members have said that everyone is gaining £700 from Mr Kevan Jones: Buy British. this Budget. Obviously, that does not include the 4.5 million people who make up that 17%. Clearly, those people do Jacob Rees-Mogg: None of them is British, unless not count. Far from gaining from the Budget, those people buy Aston Martins. We could say, “Let us all people will be losing. buy Aston Martins with our pension funds to save the There are alternatives to raising the tax threshold. If British car industry.” If we decided to do so, we would the Government’s aim is to help low-paid workers, at least be spending our own money to support Britain. which is what Government Members say, why did they If we ended up sleeping in the Aston Martin, we would decide to cut tax credits by so much? My hon. Friend have nobody but ourselves to blame; it would not be the the Member for Glasgow North East (Mr Bain) spoke 823 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 824 about universal credit work allowances. It has been very small indeed, and similar to that of ToryGovernments. suggested that one way to help low-paid workers would In only one of the three periods of Tory Government—1951 be to increase the taper on the replacement for tax to 1964, 1970 to 1974, and 1979 to 1997—did unemployment credits for people on universal credit who are in work. stay the same. In both the others it went up. Between However, the Government decided when they first invented 1979 and 1997, unemployment rose. It was only 5.6% at universal credit that the work allowances would be cut the beginning, and more than 7% afterwards. In 13 of back. That means that people will lose their credits those 18 years, unemployment was more than 10%. It is much more quickly than would otherwise have been the not true that unemployment rises only under Labour case. That will happen without the further changes to Governments or that it has been higher at the end of the universal credit rates and tapers that are clearly every Labour Government than at the beginning. The intended by the Government, who want to fund the record of a party that put the country through 18 years extra help with child care for low-paid families from of government, in which unemployment was more than other low-paid people. We are told that that will be 10% in 13 of them, is not one to be proud of or boast funded out of universal credit. about. Perhaps we could hear a little less of those The problem with universal credit is that we are not soundbites that are not accurate before Members come sure that we will ever see it. We certainly will not see it to debate in this House. for a considerable time. Universal credit, which was For the low paid and people who are struggling in meant to make work pay for everyone and was the this economy, the Budget will not offer much help. On answer to so many problems, currently covers about pensions, do we remember the 1980s or do we not? The 3,500 individuals in the whole country. It was supposed 1980s pension reforms, which tore apart the state earnings- to roll out to all new applicants for all sorts of benefits related pension scheme, were boasted about as freeing in October last year, but the event horizon keeps moving people up from the dead hand of the state to have away. Given that, perhaps the Government would like personal pensions that they could make choices about, to rethink some of their thinking on credits. To say to and it would be fine. It turned out that for many people low-paid parents that at some point 85% of their child it was an extremely bad choice. That has led to the care costs will be met “under universal credit”—those decline in the level of pension saving. People did not are the words that are always said—is not a great help if build up pensions over those years. If the state earnings- we do not know when it will come in. For those people related pension scheme had been left alone, an awful lot it will certainly not be 2014, 2015 or 2016, and for many of people would have been much better off in their probably not even 2017. In the last timetable we were retirement, and perhaps the Labour Government, when told that some people would not be included even by we came to power in 1997, would not have needed to 2017, and given that no timetable from the DWP has introduce pension credits to lift pensioners out of the come anywhere near being introduced, it is perhaps not high level of poverty many were then suffering. surprising if I am somewhat sceptical. Perhaps help Some of us are sceptical about a pensions policy that with 85% of child care costs for low-paid families could appears to have been written on the back of an envelope. be introduced now, rather than wait for universal credit. The boast is that it will give freedom to everybody. That We hear a lot about jobs and how many more there sounds good and it is very hard to argue against—people are, but I wish to raise a point that I have made several have the right to use their own money—but remember times recently: despite those jobs, the level of unemployment the result of the 1980s. We are still picking up the pieces remains stubbornly high in this country and it is time from that. To change something as big as pension the Government did something about it. Some 2.3 million policy, we need to sit down and work it out first, not people are still unemployed, and in the Chancellor’s announce it in the Budget and then work it out. Within speech last week he said that 169,000 was the reduction a week, the Government have had to announce tweaks over 2010. When I said, “Only 169,000?” there was a to help people now. Suddenly, people were saying, “Have kind of outcry from the Conservative Benches: “Only? I got to buy an annuity now, when if I just wait till next Isn’t that important?” Of course it is important, but it is year I will not have to?” Another change had to be put not anywhere near the number of new jobs that we are in to allow people within that period to draw down now, constantly told have been created. rather than buy an annuity. That suggests there was not much planning, because clearly nobody had thought What exactly is going on? Are we not worried about that that would happen. That is not the way to make the 2.3 million people who remain unemployed, many pension policy. It is not giving people a wonderful of whom do not appear to be on benefits? The argument freedom if they find out some years later, as happened that benefits are so comfortable and that is why people in the 1980s, that there will be catastrophic results. At are not working does not appear to apply because 58% least model it and work it out properly. It might have of those unemployed people are not on the JSA count. made headlines, but it may come back to bite later. Every time some of us ask questions, Government Members—particularly Ministers—produce figures and say, “Unemployment in your constituency has gone down 6.37 pm by this, that or the other”, but they are giving the claimant Guy Opperman (Hexham) (Con): Growth up, count not full unemployment figures. It is important to unemployment down, inflation down and, certainly in have policies in place to help with unemployment. my region and constituency, a very positive response to I am tired of things being thrown at the Labour party the Budget. The north-east chamber of commerce held that are simply not true. One of the favourites is, an event, to which I went with the hon. Member for “Unemployment always rises under a Labour Government.” Newcastle upon Tyne North (Catherine McKinnell) It is not true. It was not true of the Labour Government 10 days ago, to assess and review the Budget. The response between 1945 and 1951, and the extent of the increase was overwhelmingly positive. I accept that it is only a during some of the other Labour Governments was chamber of commerce, as some Members have said—the 825 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 826

[Guy Opperman] in the country will find that that is a massively popular policy, and anyone who wanders into the premises of hon. Member for North Durham (Mr Jones) was rather any small and medium-sized enterprise will find that disparaging about the north-east chamber of commerce— everyone there is talking about it. Larger businesses will but it has 3,000 members, all of whom are SMEs and benefit particularly from the doubling of the annual businesses in the north-east. They said: investment allowance, and nearly every business will “The NECC is pleased to see recognition of some of its key pay no tax up front when it invests in the future. That is priorities in the Budget and that these figures demonstrate that fantastic. increased business confidence, as reflected by the NECC quarterly economic survey, is manifesting into real growth and jobs.” The north-east is the only region in the country with I welcome the fact that the jobs situation is improving a positive balance of payments. We export more than we in the north-east. [Interruption.] As always, it is good import. I welcome the fact that manufacturing is being to hear the hon. Member for North Durham chuntering turned around and being supported by this Government, from a sedentary position. His speech was one of those after struggling under the last Government. The number where the glass was either half full or half empty. From of apprenticeships is doubling in our area, and the number HS2, Adonis and the job situation, the glass was evidently of traineeships is also increasing. I cannot stress strongly definitely half empty, but the figures—these are not my enough the difference that traineeships are making in figures, I hasten to add, but the House of Commons the brave new world in which we are living. unemployment by constituency JSA figures—indicate that in North Durham the number of JSA claimants is I visited a company called Release Potential, which is down 21.8%. The 18 to 24 claimants are down 22.4%, in Stocksfield, in my constituency, and which is giving the 50 and over claimants are down 14.8% and the young people the opportunity of becoming trainees. Once claims of 12 months duration are down 13.3%. they have done that, they have a much better chance of securing apprenticeships and jobs. We should be supporting Mr Kevan Jones: The hon. Gentleman is looking at that, and, as always, encouraging employers to take on claims rather than unemployment, which is the important apprentices and trainees. I should make a declaration at thing. That is the point my hon. Friend the Member for this point: I am the first Member of Parliament to hire, Edinburgh East (Sheila Gilmore) made. He should talk train, retain and, now, employ an MP’s apprentice. She to people who are not on the claimant count and people is not an apprentice MP; she is an office manager, who are being sanctioned by the Government. The idea although some people often say that she would do a that claimant count is a reflection of economic activity better job as an MP. The honest truth is that if I can do in North Durham is complete nonsense. that when running a small business with a relatively low budget and very few staff—as all MPs do—I see no Guy Opperman: Let us try to be nuanced about this. reason why other SMEs cannot do the same. We all accept that there are isolated examples of genuine What else is there to welcome in this outstanding distress and difficulties of the kind that the hon. Gentleman Budget? [Laughter.] Labour Members laugh from a describes. No one disputes that; such circumstances sedentary position, as they always do, but Newcastle exist in all our constituencies. However, as the hon. airport has sought a change in the air passenger duty Gentleman knows, I spend more of my time in Newcastle rules for ages. When I went to see the Chancellor, he than in Hexham— listened to my representations and to those of Members Mr Jones: I am sure that they are pleased in Hexham. from Manchester and Bristol, and I am grateful to him for that. The changes in APD rates, including the abolition Guy Opperman: The claimant counts in Newcastle of the two highest rates, will be fantastically helpful, are down as well, as are the claimant counts in virtually and—again—will be welcomed by the chambers of every constituency in the north-east. Suggesting that commerce, not just in my constituency but throughout individual examples take care of all 21% is fatuous. the country. Anyone who travels on an international route to try to promote trade overseas will welcome it. Mr Jones: Will the hon. Gentleman give way? As chair of the all-party parliamentary group for air Guy Opperman: Not at this stage. I want to make ambulances, I should declare an interest in the subject. I some progress. I had the great pleasure of listening to also made use of one or two air ambulances when I was the hon. Gentleman for 42 minutes— a very bad jockey and required their assistance. For many years, since the presentation of a petition signed Mr Jones: Good! by 155,000 people—and the Hexham Courant’s small but very weighty petition—we have been trying to get Guy Opperman:—and, sadly, I shall not be burdening rid of VAT on the fuel used by air ambulances. In the him with 42 minutes myself. north-east, the Great North air ambulance service led the campaign, and is a massive beneficiary of it. The cut The Lord Commissioner of Her Majesty’s Treasury announced in the Budget will save air ambulances a (Mr David Evennett): Hear, hear. huge amount. It will allow more missions to be flown, and there is no doubt that lives will be saved. There is Guy Opperman: It is great to be applauded by one’s immense support for the measure in all the air ambulance own Whip. services in the country, Let us look at the bottom line. Corporation tax is down The Chancellor said in his Budget statement: from 28% to 21%, and employment allowance will reduce employers’ national insurance bills by up to £2,000. “I will continue to direct the use of the LIBOR fines to our Anyone who visits any high street in any town or village military charities and our emergency service charities”, 827 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 828 but added that he would also Guy Opperman: Surely the hon. Gentleman must “extend that support to our search and rescue…and provide £10 acknowledge that it was because of all the difficulties million of support to our scouts, guides, cadets and St John created by the crash engineered by his beloved former Ambulance.” Prime Minister, the right hon. Member for Kirkcaldy His intention was best expressed by this simple expression: and Cowdenbeath (Mr Brown), and it was not possible to get bank and mortgage finance. Help to Buy has “1…want the fines paid by those who have demonstrated the massively changed that. worst values to support those who demonstrate the best of British values.” —[Official Report, 19 March 2014; Vol. 577, c. 786.] I turn briefly to pensions. While I was canvassing last That is absolutely outstanding, and offers support to all weekend, a gentleman on the doorstep said: the individual charitable and voluntary organisations “It’s my money. I saved it. Why do I have to give it away in tax that are the bedrock of our communities. and charges for low returns?” There is no question but that annuities have been a There were also announcements on school funding. source of criticism for a very long time. Anyone who, like me, has taken part in the F40 fair funding campaign will greatly welcome the announcement The reality is that the public do not believe that from the Minister for Schools, the right hon. Member Labour has any credibility when it comes to maintaining for Yeovil (Mr Laws), and the support from the Treasury. the welfare cap, which I debated last weekend with the F40 budgets will be increased, be it in Northumberland, hon. Member for Easington (Grahame M. Morris), Durham or in other rural areas. The consultation going who is not in his place. They simply do not believe forward is an outstanding and important contribution. Labour on welfare, which wants to keep spending in any If we can change the way our schools are funded, they way it can, regardless of the ability to pay the bills. will have a genuine possibility of surviving. Much has been said about poverty and the low paid. I could talk about fuel duty, which, as we all know, Last Friday, I was pleased and proud to hold the first the previous Government raised remorselessly—well living wage summit, with the Living Wage Foundation, over a dozen times. I am pleased to say that the Chancellor, in Newcastle. It was attended by a large number of local with great difficulty and in very difficult times, has businesses, including the Rowntree Foundation, Traidcraft, managed to cancel the fuel duty escalator that KPMG, Northern Doctors and Mike Joslin, all of the previous Government sought to include in future whom came together as accredited living wage employers. Budgets. There are only 20 such employers in the north-east, whereas there are approximately 600 around the rest of I have some outstanding breweries in my constituency, the country. The representative of the Northern TUC such as the Hadrian Border Brewery, Allendale and was there, as were representatives of individual businesses Matfen. I can assure you, Madam Deputy Speaker, that and of the North East chamber of commerce. Anyone when you holiday in God’s own county of Northumberland, who came to the event last Friday would have been you will want to visit the various beer festivals that will satisfied that we were taking real action, and that companies take place there this summer, where the further reduction that are voluntarily committing to paying the living in beer duty will be welcomed. That reduction supports wage are supporting their employees. Many people at not just the person who wants a pint of bitter, but the that event told me that this was a Budget we should be brewers, because it allows them to invest and to create proud of. They said that it was a Budget for growth, for jobs. It provides genuine support for businesses that jobs and for the north-east. It is a Budget that will be struggled desperately under the previous Government, widely welcomed across the country. and they are extremely grateful. On housing—unlike the hon. Member for North 6.50 pm Durham, I am having to condense my 42-minute speech into approximately 10 minutes—those who visit Humbles Ian Mearns (Gateshead) (Lab): It is a pleasure to Wood, in Prudhoe, in my constituency, which is a follow my near neighbour, the hon. Member for Hexham new-build housing estate, will find that 85% to 90% of (Guy Opperman). There has been a north-east persuasion all purchases there are made with Help to Buy. It has to the debate today: we have heard from North East utterly transformed the ability of a relatively low-paid Somerset and Glasgow North East—as well as Edinburgh local community in one of the smallest towns in my East—and I represent the central, northern and eastern constituency to access housing. It is a massive help, and parts of Gateshead, which is in the heart of the north-east not just there. To answer the point made earlier by the of England. I have to say, however, that my part of the hon. Gentleman, when I spoke to the various estate north-east of England is quite different from that of the agents in West road, Newcastle, they too reported the hon. Member for Hexham. From my perspective, he is massive difference that Help to Buy has made in what is— way out west. From the perspective of many of my constituents, the Mr Kevan Jones: Will the hon. Gentleman give way? Budget and the Finance Bill come across as complacent, smug and somewhat self-serving. The Chancellor painted a rosy picture of recovery in his Budget statement, but Guy Opperman: One last time, just to give the hon. for those who represent many of the constituencies Gentleman an extra minute or so. outside London and the south-east, the picture is very different. I have to defend my region and my constituency, Mr Jones: I am sorry that the hon. Gentleman spends where real incomes for most are falling not rising, where so much time in Newcastle, rather than Hexham, which living standards for most will be lower in 2015 than in I agree is a beautiful constituency. The figures for 2010, and where the number of working poor is rising, average house prices in the north-east show that they with many in insecure work now being paid a low are still worth £5,000 less than they were in 2008. hourly rate for part-time or combinations of part-time 829 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 830

[Ian Mearns] around the 7% mark, unemployment in the north-east has only just dipped below 10%. That is the claimant count jobs. There has also been slower growth and a higher figure; it is not the count of people who are economically continuing deficit than expected, and the overall debt inactive, which is a much greater figure for a region such has grown dramatically. as the north-east of England. I baulk at the complacency We are a diverse country. We have regions of relative from Government Members in the face of that, because prosperity with pockets of poverty, but we also have it is having a dramatic impact on people’s lives. regions of relative poverty with pockets of prosperity. The north-east of England is a region of relative poverty Guy Opperman: I accept that there is a difference with pockets of prosperity, and the north-east economy between the two types of job measurement, but let me is still in recession. In my own constituency of Gateshead, give the hon. Gentleman the figures for Gateshead: the the pace of economic recovery is painfully slow, if not number of jobseeker’s allowance claimants is down by non-existent. The negative impact of welfare reforms, 21%, the total change over 12 months in the number of the lack of central Government investment and the cuts claimants aged 50 and over is a reduction of 13.5%; and to local government are having a profound and damaging the 12-month change in the number of claimants aged impact on our economy and on people’s lives. They are 18 to 24 is a decrease of 26.8%. also having a profoundly negative impact on the business community in parts of the north-east. The policies and Ian Mearns: Those figures are interesting. It has to be priorities of this Government show a total disregard for said that economies such as the north-east of England the people and the region of the north-east. look at the JSA figures and see that they have removed This Finance Bill is another missed opportunity. The from them people sanctioned because of their benefits. Chancellor has made it clear that public sector cuts and The last estimate I saw was that almost 1 million people austerity will continue for the foreseeable future, but on JSA were in receipt of a sanction in the last counting local government budget cuts are sucking the spending period. In addition, some 600,000 people, on a conservative power from local economies. Since 2010, my local authority estimate, are now employed on zero-hours contracts. in Gateshead has suffered cuts of £75 million, with the Our regional economy suffers from not only unemployment, loss of over 1,200 employees. That is 1,200 people who but significant amounts of under-employment. no longer have the wherewithal to spend money in their Despite the Government pledge to ensure that it is local shops and communities or to support local businesses. always worth working, it will be those in work who will In 2014-15, we will suffer a further reduction of over most feel the squeeze of this Government’s policies. £15 million, with a reduction of a further £24 million in Average weekly earnings and gross disposable income 2015-16. It total, by the end of 2015-16, Gateshead will in the north-east are the lowest of any English region. have suffered a 37% reduction in its grant from central According to the latest Real Life Reform report, which Government. That figure is in line with that for all 12 has been conducted by the Northern Housing Consortium, local authorities in the north-east, all of which have the average spend on fuel among the study subjects has suffered cuts of more than 30%. Such cuts are 10 times risen by 8.5% since only December and by more than the figure suffered by authorities serving affluent areas 30% just since last September, and is now at an average in the south-east and the south, where average cuts in of £32.62 per household per week in that study, which is grant support have been less than 3%. Needless to say, of people on very low and modest incomes. we top the league not only in cuts for local government, but in cuts for welfare benefits—it is a shame our The Chancellor has made much of his personal allowance football teams are not topping the league. When the increase, but the Government continue to ignore the current welfare reforms have come into full effect they negative impact of their 24 tax rises between 2010 and will have taken nearly £19 billion a year out of local 2015. I am not a natural bedfellow of the TaxPayers economies, which is equivalent to about £470 a year for Alliance, but it believes that there have been 254 tax every adult of working age in the country. Of course the rises, particularly the hike in VAT in January 2011 from impact on the poorest—on those in most need—will be 17.5% to 20%. Even the Prime Minister accepts that greatest, and the impact varies greatly across the country. VAT rises impact on the poorest, and he always knew At the extremes, the worst hit local authority areas lose that they would. On 5 January 2011, he said: about four times as much per adult of working age—as “If you look at the effect”— much as £910 per working adult—as the authorities of VAT— least affected. The three regions of the north of England “as compared with people’s income then, yes, it is regressive.” alone can be expected to lose about £5.2 billion in In Exeter in 2009, the right hon. Gentleman, as the then welfare benefit income. That is money being sucked out leader of the Opposition, said of VAT: of the spending power in local economies. “Youcould try, as you say, to put it on VAT, sales tax, but again Mr Kevan Jones: Does my hon. Friend agree that this if you look at the effect of sales tax, it’s very regressive, it hits the is about not just cuts in local authorities, but cuts in poorest the hardest. It does, I absolutely promise you.” welfare? For example, in Wokingham the number of people affected by the bedroom tax is only 237, whereas Mr Kevan Jones: Like me, was my hon. Friend shocked I am sure the figure for his constituency is much higher. when the “Conservative”Member for Redcar (Ian Swales) said that VAT was not a regressive tax? Ian Mearns: I could not agree more. Again, on employment, we have to wonder whether Ian Mearns: Given the statements that I have just read the Prime Minister and Chancellor are on the same out, which are attributed to the current Prime Minister, planet as we inhabit in the north-east of England. I am flabbergasted by the attitude of the “Conservative” Whereas unemployment figures for the UK are hovering Member for Redcar. 831 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 832

In his Budget statement, the Chancellor proudly High Speed 2 will not help us in the short to medium championed the rise in the minimum wage to £6.50. term. It will take until 2033 for HS2 to reach the However, given that his entire experience revolves around north-east, seven years after it reaches the west midlands. his coterie of millionaires—including the majority of As I have said on several occasions, 20 years ago I could his Cabinet colleagues—it is little wonder that he has travel from Newcastle to London in two hours and absolutely no idea how difficult it is to raise a family on 38 minutes. After £50 billion of investment and 40 years, £6.50 an hour. How can one invest £15,000 a year in an our journey time will have reduced by 20 minutes. From ISA on a salary of £6.50 per hour? The Finance Bill the perspective of the people of the north-east of England, does nothing to help my region and nothing to reverse is that a good and sound investment? Even the chairman any of the damage inflicted by this Government over of HS2 believes that it is a bad deal for the north-east the past four years. and has said in the press today that if people in the The Government’s proposed cuts to the public sector— south-east of England had the transport infrastructure the Institute for Fiscal Studies estimates that, outside of and trains that we have in the north-east, there would be the NHS and schools, they could result in a 40% cut riots in the streets. That is the chairman of HS2. in the public sector workforce—will disproportionately This is a complacent Budget that does nothing to affect my region. Cuts to local government expenditure rebalance the economy.I urge Members on the Government will also have the heaviest impact on the most vulnerable Benches to think again, because I can tell them that the who rely on the provision of services by their local hon. Member for Redcar and the hon. Member for councils. We are letting down the most vulnerable in our Hexham will be severely tested come the next general society. election. The Chancellor’s much-heralded recovery is, to be honest, little more than a rise in consumer spending, 7.5 pm fuelled by a false confidence based on rising house Jim Shannon (Strangford) (DUP): I am pleased to be prices in the south-east of England, which have been called to make a small contribution to the debate, stoked by the Government’s Help to Buy scheme. Madam Deputy Speaker. I wish to be respectful to all When the Chancellor of the Exchequer announced parties and individuals in my speech, and I want to the pension pot release scheme, I am sure that he was speak about the reasoned amendment. It refers to the not actually expecting the vast majority of recipients to cost of living crisis, and no one who represents a buy a Lamborghini, but I am pretty sure that he was constituency in this Chamber can ignore the cost of hoping that enough pensioners would spend their lump living. Yes, things are better. I acknowledge that and it sums—even if it is only 10% or 15% of it—on things is good that they are better. It is good that unemployment such as cars and home improvements, and thus help is down and that there are opportunities, but the money fuel a consumer-led recovery. is just not in the pockets of the people I see on the high The Government’s stated aim was to “rebalance the streets of the towns that I represent. The cost of living is economy”. So far, I see little evidence that the massive still an issue that we need to address and I want to be losses to public sector jobs in the north-east are being respectful in that regard. offset by private sector job creation. That needs to be The amendment also refers to tackling rising energy addressed urgently. bills. I know that the Government have given a commitment A representative of the Federation of Small Businesses to doing that through the Budget and the debate over told me that the north-east has some 136,000 private the past couple of days has tried to address that, too. sector businesses, which sounds very positive, but he Today at Lambeth house, the all-party group on went on to say that only 1,000 of them had more than hunger and food poverty launched an inquiry to address 50 employees, and 100,000 of those businesses are sole poverty in the United Kingdom of Great Britain and traders. When we are sucking out money from people’s Northern Ireland and to take into consideration other pockets and from their spending power, we are bound parts of Europe where food banks are part of life. I see to impact on the private sector in an economy that has food banks as a positive, not a negative, as they bring so many small businesses. communities together and energise people’s focus on The north-east is very different from London and the those who are less well off, and people are very kind. south-east. Having suffered savage and disproportionate Those are the benefits, but the all-party group will focus cuts, the region has experienced severe impacts on its on poverty as well. small business sector as the Government have deliberately The hon. Member for North Durham (Mr Jones) gone about the business of shedding jobs and sucking mentioned young people and work. If there were ever out spending power and disposable income from the an issue to which hon. Members should draw attention, region’s economy. it is the young people we represent in our constituencies. Let me highlight the difference in investment in different We want to see them getting courses at their local parts of the country.I do not understand how Government colleges and employment opportunities at the end of Members who represent our region can be so complacent them. In his response, will the Minister gives some about this matter. We all know the facts about how much indication of the specific provision in this Budget to has been invested on transport infrastructure in London help young people to get job opportunities? and the south-east per head of population in comparison I also want to highlight the issue of unemployment with the north-east. It is in the order of magnitude of and those over 50. Those who lose their jobs at the age 500:1—£500 more spent in London and the south-east of 50-plus find it very hard to get back into employment. per head of population than in the north-east. That is Although they might have opportunities for courses, severely affecting travel to work mobility in the north-east. re-employment and retraining, the critical factor will be According to the Institute for Public Policy Research, it job opportunities. Perhaps the Minister could also consider is quite unsustainable from a regional economic perspective. that. 833 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 834

[Jim Shannon] we have with individualism, we have to consider this burden as a proportion of that placed on a single person The Government have clearly made a commitment on the same wage. In the UK, such a family pays more on child care costs. That will enable people to work. The than 80% of what a single person on the same wage Chancellor has stated his commitment—the Economic pays while the OECD average is just 55%. Such Secretary to the Treasury did so again on TV last night individualism will not fix broken Britain. —to create 1 million more jobs. That is good news, if That Chancellor has today taken an important step the commitment can be delivered in reality. in re-inserting recognition of family responsibility into Housing supply is an issue in my constituency. One of the tax system. We welcome that and we are pleased the biggest issues is the need for affordable rental that it has happened. This is a seminal development, accommodation. Although housing is a devolved matter and one on which we must now build for the future. in Northern Ireland, it is still a critical issue and I look forward to seeing some changes in that regard. 7.13 pm I commend the Government for their pension changes. The hon. Member for North East Somerset (Jacob Shabana Mahmood (Birmingham, Ladywood) (Lab): Rees-Mogg) mentioned corporation tax. Although there We have had an interesting debate today, which has is a commitment on air passenger duty, it is not enough made stark the difference between the Opposition’s and does not address the considerable difficulties we priorities and those of Government Members. The Finance have in Northern Ireland because of the land border Bill is thick and heavy, but it is pretty light on content that people can drive across. Air passenger duty in the that is relevant to the working person on a modest Republic is 0% and tourism VAT is at 9% whereas it is income. 20% in Northern Ireland. Those are critical factors that My hon. Friends have made some powerful and affect the Northern Ireland economy. We also have the persuasive speeches highlighting precisely that point. highest fuel costs in the United Kingdom, and we My hon. Friend the Member for Houghton and Sunderland would have been happier to have seen a specific scheme South (Bridget Phillipson) spoke with passion about for Northern Ireland on that. Those are key issues. how her region was suffering as a result of the Government’s I want to put on the record my disagreement with the polices, and drew attention to the imbalance in the Opposition’s view on the marriage tax allowance. I am recovery that they have delivered. My hon. Friend the glad that there is a married tax allowance for the third Member for Cardiff South and Penarth (Stephen Doughty) of married couples who are at present disadvantaged spoke in particular about business rates and the success and who will, through clause 11, be better off. It is a of the jobs growth programme being run by the Welsh Government commitment and it is good news. It is also Labour Government, whom this Government like to a Democratic Unionist party commitment. We are pleased bash at any opportunity, but who are having some real to see the married tax allowance coming through for success on jobs in Wales. married couples because it is an issue that we have My hon. Friend the Member for Bolton West (Julie supported. It is a pledge in our manifesto. We support Hilling) made a particularly powerful point. She reminded married couples and we have sought provision for them the House that the Chancellor said that this is a Budget through the Treasury. It is good news to see that delivered for makers, doers and savers, but she said that it has through clause 11. nothing in it for those who are making do. May I put on record my strong support for the My hon. Friend also reminded us of the tragedy of provision in the Budget of transferrable allowances for zero-hours contracts. She gave a powerful example of a married couples? This has been a long time coming and constituent who was sanctioned under DWP rules for is very welcome. It is a shame that at exactly the same leaving a job that gave him zero hours of work. It was a time the Chancellor should announce a provision that tragedy for the individual concerned, but it also shows discriminates against one-earner couples. A Government how iniquitous the rules are in practice. committed to fixing broken Britain should value those families where the decision is made to sacrifice a second Guy Opperman: Is there anything the hon. Lady salary so that one parent can remain at home to invest welcomes in the Budget, whether the raising of the in the children. Sadly, the Chancellor’s child care income tax threshold, the extension of apprenticeships, announcement offers them no support at all and leaves the support for the high street or the work done to them feeling like second-class citizens. There is provision support manufacturing? Does she not welcome any of for those on higher incomes and there is provision for those things amidst this sea of opposition? those on lower incomes, but those who are often referred to as the squeezed middle do not receive the child care Shabana Mahmood: I am grateful to the hon. Gentleman provision that they should have. It is also vital for the for his intervention. I very much welcome the Government’s provision to be widened, especially with the news that U-turn on investment allowances, which we warned the child care provisions are to remain available to the were a mistake in 2010. It is really good that the very rich, so transferrable measures also pertain for Chancellor has finally decided at the tail end of this higher rate taxpayers. Parliament to put right that bad decision. Since 2000, we have been very unusual in having a tax My hon. Friend the Member for Glasgow North East system that does not recognise family responsibility in (Mr Bain) reminded the House of two anniversaries: any way. All manner of injustices have followed from 15 years ago today the national minimum wage came this fiscal individualism, such as the fact that the tax into effect; and a year ago today the Government burden on one-earner married couples on an average introduced the bedroom tax. That is a clear example of wage with two children is 45% greater than the OECD the big differences in the values and priorities of those average—up from 42% last year. To really see the problem on the Opposition and on the Government side. My hon. 835 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 836

Friend the Member for North Durham (Mr Jones) not shouting that from the rooftops, but there are spoke for some time, although not at his usual length, suggestions that some banks will pay £300 million less. about the things that are missing from the Bill. He We will need to see the detail and to press the Minister focused on the detail of the pension changes, which we on that point in Committee. will scrutinise, especially in relation to social care costs, It is a real embarrassment for the Exchequer Secretary which he was right to highlight. that his projections on how much the bank levy would My hon. Friend the Member for Edinburgh East raise were so far off. Earlier, he ducked the opportunity (Sheila Gilmore) spoke of how some savers will benefit to explain that; I would happily give way to him now if as a result of the Government’s measures, but for many he was willing to explain, but he does not want to. No people saving is a luxury that is far out of reach. My matter—we will return to the matter at length when we hon. Friend the Member for Gateshead (Ian Mearns) are locked together in a Committee room debating reminded the House of the imbalance of the recovery these issues. and how the north-east continues to suffer. He also On Government changes that might end up helping made a point that no one made today in relation to the the banks pay less, I should also mention the small local government cuts, which are only just starting to matter of the schedule 19 charge. In fairly impenetrable bite and will further embed the regional imbalance in and hidden-away language, the Government seem to our country. have given a £145 million tax cut for investment managers, People are looking to this Government to take action whose industry is, frankly, doing rather well at the to help them in the here and now. I am talking about the moment. It could have been asked to forgo that tax cut, people who elected us to make decisions on their behalf. given that the poorest and most vulnerable in our Those people are, on average, £1,600 a year worse off society continue to suffer. That shows the Government’s since this Government came to power. They will be priorities. worse off in 2015 than they were in 2010. Even if we take into account the combined effect of tax and benefit Mr Brooks Newmark (Braintree) (Con): Will the hon. changes, they will still be £900 a year worse off. For Lady give way? those Government Members who are not sure what that really means, I will explain that £1,600 is about half the Shabana Mahmood: I will not for the moment. I will cost of the uniform required for membership of the make some more progress—[Interruption.] Bullingdon club. For residents of inner-city Birmingham, which I represent, it is about three months’ rent. Madam Deputy Speaker (Mrs Eleanor Laing): Order. Those people are working harder and harder for less Too many conversations are going on around the Chamber and less, and they are looking for help in the here and that have nothing to do with the speech being made by now to make sure that at the end of the working week the shadow Minister. Members ought to have the courtesy or month they have earned enough money to pay the to listen to the hon. Lady. rent, put food on the table and clothe their family. But this Finance Bill contains no such help. The fact that Shabana Mahmood: Thank you, Madam Deputy people are worse off and have to spend more on everyday Speaker. I am not surprised that Government Members essentials seems not to exist, according to the Bill. It is do not want to hear about their secret £145 million tax as if all Government Front Benchers have been caught cut for investment managers. in some kind of existential trance: if they cannot see or feel the cost of living crisis, it cannot exist; even if it Mr Newmark rose— exists, it cannot be communicated to others; and even if it can be communicated, it simply cannot be understood. Shabana Mahmood: I will not give way for now. The people who are £1,600 a year a worse off need Instead, the Government’s priority has been the married help in the here and now. This Bill could have done that; couple’s tax allowance—hardly the here and now help it does not. This Government could have done that; clamoured for outside the Westminster village. What they did not. Where was the action to help working does it amount to in practice? It totals £3.80 for the parents and families? We know that nursery costs have couples who qualify, at a cost to the Exchequer of gone up by 30% since 2010. A parent working full time £500 million. I note that earlier the Chief Secretary to on the living wage with one child in nursery care will not the Treasury refused an opportunity to stand at the see a penny of income until the beginning of the third Dispatch Box and confirm his support for the measure. week of the month. That is truly shocking. What do the It does not look as if he wants to do that now. His Government offer? They offer help after the next general silence says all that needs to be said. election, but nothing in this Bill. Why did they not take The policy is slightly random; it excludes widows, the opportunity in part 2 of the Bill to raise more widowers and people living on their own, for the sake of money from the bank levy to fund an expansion of free outcomes that are far from clear. It will help just one child care for working parents of three and four-year third of married couples, 84% of the gainers will be olds from the current 15 hours to 25 hours? That would men, and just one in six families with children will be real help. We will scrutinise the detail of the relevant benefit. What about the rest? There is nothing in the clauses in Committee. here and now for them either. What could the Government In opening, my hon. Friend the shadow Chief Secretary have done? For starters, they could have scrapped the to the Treasury referred to an article from The Daily married couple’s tax allowance and brought in a lower Telegraph, which is not often helpful to the Opposition. 10p starting rate of tax, which we have called for and However, it has recently reported concerns that the which would help 24 million taxpayers, including 12 million Government’s planned changes to the bank levy might people who are married, and almost half of whom— amount to a tax cut for the banks. The Government are 46%—would be women. 837 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 838

Mr Newmark rose— corporation tax rate would remain competitive, but that switch in spending would strike a better and fairer Shabana Mahmood: I will give way to the hon. Gentleman balance. Business rates have already gone up by an if he will confirm that a 10p starting rate of tax 46% of average of £1,500 under this Government, and many whose beneficiaries would be women is better than a businesses, including more than one in 10 small businesses, policy 84% of whose beneficiaries would be men. are now paying more in business rates than in rent. Unless things change, business rates will have risen by Mr Newmark: It is worth reminding the House that an average of nearly £2,000 by the end of this Parliament. the Labour party abolished the 10p rate and that this This Government have failed to help small businesses, Government abolished a 10% rate on savings. We will and so the next Labour Government would cut business not take lectures from the hon. Lady. Furthermore, as a rates in 2015 and freeze them in 2016. result of the raising of the personal allowance to £10,500, 3.2 million people have now been taken out of taxation Stephen Doughty: I wonder whether my hon. Friend altogether. That is helping the less well-off. has had the same experience when talking to small businesses in her constituency as I have had in mine. Shabana Mahmood: Yet after all that action, this The top two concerns they have raised with me up and Chancellor and this Government have given with one down the streets of Cardiff and Penarth are business hand and taken away a hell of a lot more with the other. rates and energy prices—two things that this Bill does The hon. Gentleman knows that is true. He also knows nothing about. that people will be worse off in 2015 than they were in 2010, which says everything we need to know about this Shabana Mahmood: My hon. Friend makes a powerful Government’s priorities. point. His experience as a constituency MP is exactly What is there for young people? Long-term youth the same as mine. Almost every business that comes to unemployment has doubled under this Government, see me at my surgery is struggling with its business rates and 900,000 young people are out of work. What is and energy costs. there in the here and now, in this Bill, to help them? Not What does the Bill say about the top rate of income much. The Chancellor spoke yesterday of full employment, tax? Well, it remains at 45p. This Government have but where are the policies that would make that happen? given an average tax cut of more than £107,000 to the The number of young people out of work for one year 8,000 millionaires in our country. They seem to think or more has almost doubled under this Chancellor, and that if they keep talking about the increase in the what this Government have delivered—the Work personal allowance they will make people forget that programme—has returned more people to the jobcentre the combined impact of the tax and benefit changes is than have been found new work, while only 5% of that a typical household is £900 a year worse off, and disabled people have been helped to find a job. that the richest in our country are getting an absolutely The hon. Member for Dover (Charlie Elphicke), who huge tax cut. The Government are desperate to be able is not in his place, cited the welcome decrease in long-term to claim that the 50p rate raised as little money as youth unemployment in Birmingham, Ladywood. He is possible because they want to make it easier for themselves not aware, though, that Birmingham’s Labour-run council to justify their decision to give a tax cut to the wealthiest administration has introduced a scheme called the at a time when ordinary families are really struggling. Birmingham jobs fund, based on the Labour Government’s The Government’s own assessment claims that the future jobs fund, specifically to tackle youth unemployment. cost of cutting the rate to 45p, excluding all behavioural That is why we have seen a decrease in long-term youth changes, was over £3 billion. To justify the tax cut, they unemployment in my constituency and in other argued that most of the potential revenue would be lost Birmingham constituencies. Although he might not as a result of tax avoidance. Government Members have meant to congratulate my colleagues at Birmingham were very excitable about the Government’s record on city council, I shall certainly pass his congratulations on tax avoidance, which I will come to in a moment. But to them. surely a Government as proud as they are of that record Where was the help for small businesses—the backbone would have taken some targeted anti-avoidance measures of economic growth in this country—who are crying to stop people avoiding the 50p rate. Instead, they out for extra support? We have said that instead of ducked the opportunity. going ahead with the additional 1% cut in corporation The Government also claim that tax revenues rose tax, the Government should use that money to cut and after they cut the top rate of tax, but both the Office for then freeze business rates so that small and medium-sized National Statistics and the OBR have said that many of enterprises can get some real help now. During last the highest earners moved their income and delayed week’s debate on the Charter for Budget Responsibility, their bonuses by a year after the 2012 Budget to benefit the Government tried to portray Labour’s policy as an from the lower top rate of tax. That shifting of income anti-business proposal that would increase business taxes, will have cost the Treasury millions of pounds in lost but when it was pointed out to them that that argument revenue. When the deficit is high it cannot be right to flies only if one considers small businesses not to be real cut the top rate of tax. The next Labour Government businesses, they seemed to change tack. Today, the will put that rate back to 50p while we get the deficit Secretary of State for Education tried to posit it as down. setting one set of businesses against the other, but that There was some excitement on the Government Benches totally and utterly misses the point. about the Government’s record on tax avoidance. Although Our proposal would use all the money saved by not they like to pretend that that record is strong it is going ahead with the corporation tax cut for the largest nothing to write home about. The DOTAS—disclosure companies to support small businesses. At 21%, the of tax avoidance schemes—measures were introduced 839 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 840 by a Labour Government in 2004. Every time Government the case relates to a general anti-abuse rule and HMRC Members stand up and take credit for those measures, I believes there is a dispute. None the less, final rights will shall pass on their thanks to the previous Labour be determined by the courts. Administration, who introduced them. My hon. Friend also raised a concern about film The Government have made a number of assumptions finance. It is worth pointing out that the problems are a in their calculations of the value to the Exchequer of result of the first scheme introduced by the previous extending the accelerated payment scheme to both DOTAS Government. The current film finance regime does not and the general anti-abuse rule. Although HMRC is have the same difficulties as its predecessor. successful in about 80% of the cases it litigates I find it The hon. Member for Houghton and Sunderland hard to see why the same 80% success rate has been South (Bridget Phillipson) welcomed the policy on the applied to potential cases under the GAAR when a case annual investment allowance. It is often observed that on the GAAR has yet to go to court. We will scrutinise Opposition Members run down the state of the economy the Government’s numbers in Committee: they have a and what is happening in their location, but I make no history of overestimating the impact of their avoidance such complaint about the hon. Lady. She pointed out measures. We have spoken a lot today about the Swiss that more people are employed by Nissan than ever deal, which raised £2.3 billion less than expected. I am before and that there is much good news about Nissan sure that the Exchequer Secretary will not—[Interruption.] and other companies in the north-east. I welcome her positive comments. Madam Deputy Speaker (Mrs Eleanor Laing): Order. The House is too noisy. If hon. Members listen quietly, My hon. Friend the Member for Watford (Richard perhaps the hon. Lady will be able to come swiftly to Harrington) raised a number of points. He highlighted the end of her speech. the need for those who access their pensions to be able to receive appropriate advice. I reassure him that there Shabana Mahmood: Thank you, Madam Deputy will be free, impartial and, where wanted, face-to-face Speaker. I will bring my remarks to a conclusion, but I advice. He talked about wanting to create a business want to give the Exchequer Secretary an opportunity to culture, and I agree with him about that. He also intervene and explain to the House why he got the mentioned the new universal technical college in Watford, numbers so wrong on the Swiss tax deal. He is shaking which I particularly welcome: it will help his constituents his head, which implies to me that he is not prepared to and, indeed, mine. stand up for his own record or admit that he has a The hon. Member for Cardiff South and Penarth history of overestimating his numbers. We will look at (Stephen Doughty) raised a number of points, including the numbers closely in Committee. the issue of energy prices. In one sentence he said that The Government had an opportunity with the Bill to prices are continuing to rise, but he then said that an provide help in the here and now. That is an opportunity energy provider has announced a price freeze. He claimed they have failed to take. We will be voting against the credit on behalf of the previous Government for cutting Bill and in favour of our reasoned amendment, which corporation tax, but now thinks we should increase lists the measures that we believe are necessary to tackle corporation tax. He also disappointed the House by the cost of living crisis and make sure that people on saying that he will not be serving on the Finance Bill lower and middle incomes start to see the benefits of Committee this year. Only now am I overcoming my recovery. We will seek to improve the Bill in Committee dismay at that news. and try to persuade the Government to change course, My hon. Friend the Member for Redcar (Ian Swales) but from what we have heard today and what we are no said that this Budget was another step in clearing up the doubt about to hear from the Exchequer Secretary, I mess we inherited. He highlighted this Government’s fear that the Government are so blind to the lives of efforts and successes on tax avoidance. He raised concerns ordinary working people that they will refuse to take about how Labour’s policies on energy prices are spooking the opportunity to do so. investors. He said that Labour is the anti-business party and highlighted the help in the Budget and this Bill for the manufacturing industry. 7.33 pm The hon. Member for Bolton West (Julie Hilling) The Exchequer Secretary to the Treasury (Mr David made a speech in which, essentially, she tried to refight Gauke): It is a great pleasure finally to be able to wind the 2010 general election. We certainly welcome that up this debate, Madam Deputy Speaker. We have had approach, because the Labour party got less than 30% an interesting debate and I thank all right hon. and hon. of the vote. My hon. Friend the Member for Dover Members for their contributions. (Charlie Elphicke) took up that battle and made the My hon. Friend the Member for Cities of London case against the previous Labour Government. He also and Westminster (Mark Field) referred to the naive highlighted the vacuity of Labour’s current policies. At populism and flagrant opportunism of the Opposition, one point, he sounded very much like Len McCluskey. and we have seen further evidence of that during the I apologise for missing the speech of the hon. Member course of the debate. He welcomed the fact that this was for Glasgow North East (Mr Bain), but I understand not a give-away Budget but one of a Government who that he referred to the sunlit uplands of a Labour are sticking to the plan. Government next year. I do not know whether that was My hon. Friend raised concerns about the DOTAS an April fool’s joke. My hon. Friend the Member for policy and the way in which those in disputes are being Macclesfield (David Rutley) highlighted the positive asked to pay their tax before the matter is finally determined. mood among businesses in his constituency and welcomed It is worth pointing out that that will apply only when a the changes to air passenger duty. The hon. Member for DOTAS notification has been made or, in future, when North Durham (Mr Jones) had concerns about pensioners 841 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 842

[Mr David Gauke] manufacturing and other businesses up and down the country. It means that nearly 5 million businesses will being able to spend their money wisely and was against get 100% relief on capital expenditure. That was welcomed raising the personal allowance. He will have the opportunity by the hon. Member for Houghton and Sunderland to vote against both policies this evening. South. Labour Members will vote against that. There My hon. Friend the Member for North East Somerset are the reforms to R and D tax credits, which will help (Jacob Rees-Mogg) delivered a characteristically erudite businesses to start up. [Interruption.] speech. He highlighted the fact that today is the anniversary of the death of Eleanor of Aquitaine, a mother of two Madam Deputy Speaker: Order. I am not going to sons who were deadly political rivals—the Marion Miliband ask any more polite questions. The House must listen to of her age. My hon. Friend concluded his speech by the Minister. Stop talking among yourselves. saying that we should rejoice at the Budget. The hon. Member for Edinburgh East (Sheila Gilmore) then spoke and I think the best summary of her speech would be to Mr Gauke: Thank you, Madam Deputy Speaker. say that she did not rejoice at the Budget—I think I will Labour Members will oppose the R and D tax credit. leave it at that. There are the reforms to the carbon price floor, which My hon. Friend the Member for Hexham (Guy will help manufacturing industry and ensure that the Opperman) highlighted the very supportive feedback UK is not uncompetitive. They will vote against that, about the Budget measures that he has received from against the interests of businesses in their constituencies. chambers of commerce in the north-east of England. He also highlighted the benefits of our reforms of APD. On the issue of pensions flexibility, the shadow Chief Secretary to the Treasury, the hon. Member for Nottingham The hon. Member for Gateshead (Ian Mearns) set East (Chris Leslie), said that the debate following the out his opposition to spending cuts, although he did not Budget was diverted by the attention on annuities, but it provide any suggestions about how the deficit could be is fair to say that the Leader of the Opposition was not reduced. I hope that he will serve on the Bill Committee diverted by annuities in his response to the Budget. this year—he nods his head—which to some extent Since then, we have seen confusion from the Labour makes up for the disappointing news about the hon. party. Labour Members have said that they are worried Member for Cardiff South and Penarth. that people will spend recklessly and that that will The hon. Member for Strangford (Jim Shannon) create a burden on the public finances. They should supported our policy on pensions and the recognition, know something about that, but they should not judge through transferable allowances, of marriage in the tax other people by their standards. The truth is that the system. He raised the issue of ensuring that employment Labour party does not trust the public with their money is high, particularly to help young people. Although this and that that feeling is mutual. was announced in a previous financial statement, it is On the subject of avoidance, the Bill’s measures mean worth pointing out that employer’s national insurance that £9 billion in additional revenue will be collected contributions will no longer be paid for employing over the next five years. Avoidance will be tackled as a under-21s from 2015, which will help to deal with youth consequence of the Bill. It is also worth pointing out unemployment. We are of course introducing the that HMRC’s yield over the course of this Parliament employment allowance—the £2,000 cash-back—for will be almost double its yield over the course of the businesses, which will also help. previous Parliament. That is the progress that we have made on tax avoidance and evasion. Shabana Mahmood: Will the Exchequer Secretary take the opportunity to do what none of his colleagues We are helping with the cost of living. There are hon. in the Treasury team has done? In particular, the Chief Members, including on the Opposition Benches, who Secretary refused to answer this question in debates on have long campaigned for their constituents who have the Budget. When all is said and done, will people be relatives in the Caribbean or south Asia. We are helping better off or worse off in 2015 than they were in 2010? It with air passenger duty, but Opposition Members will is a straight question—a straight answer, please. be voting against that measure. On the starting rate of income tax for savers, we are Mr Gauke: The Labour party presided over the greatest cutting a 10p rate, not doubling a 10p rate. That will recession that this country has seen for more than a mean that 1 million more people will no longer pay tax century, which had an impact on people’s living standards. on their savings. Opposition Members will be voting It is now up to this party and this coalition Government— against that. [Interruption.] The personal allowance will increase to £10,000 this Madam Deputy Speaker (Mrs Eleanor Laing): Order. year and £10,500 next year. Opposition Members will Surely the House wants to listen to the Minister. A little be voting against that. Were they to succeed, the personal quieter. allowance in 2015-16 would be not £10,500, but £9,880. That would mean that millions of people would pay Mr Gauke: After the mess we inherited, how do we £124 a year more in tax as a consequence of the Labour ensure that we build up the economy and get the sustainable vote. growth that will increase living standards? The answer is set out in this Finance Bill. Mr Newmark: Does my hon. Friend agree that raising It is worth pointing out the measures in the Bill that the personal allowance to £10,500 will take 3.2 million the Labour party will vote against this evening. There is people out of tax altogether and help 26 million families the annual investment allowance, which will help with an extra £800 per annum? 843 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 844

Mr Gauke: My hon. Friend is absolutely right. If the Hamilton, Fabian Nash, Pamela Labour party succeeds tonight, those 26 million people Hanson, rh Mr David O’Donnell, Fiona will pay £124 more in income tax next year. Harris, Mr Tom Onwurah, Chi Havard, Mr Dai Osborne, Sandra This is a Finance Bill that gives people more power Healey, rh John Owen, Albert over their own lives, a Finance Bill that helps businesses Hendrick, Mark Pearce, Teresa to invest and create jobs, and a Finance Bill that reduces Hepburn, Mr Stephen Perkins, Toby the burden of taxation on millions of income tax payers. Heyes, David Phillipson, Bridget In addition to our progress in improving skills, reforming Hodgson, Mrs Sharon Raynsford, rh Mr Nick welfare and strengthening our infrastructure, this Bill will Hoey, Kate Reed, Mr Jamie help us to build a more resilient economy. This Bill is a Hopkins, Kelvin Reed, Mr Steve further example of the Government working through Howarth, rh Mr George Reeves, Rachel our long-term economic plan and I commend it to the Hunt, Tristram Reynolds, Emma House. Irranca-Davies, Huw Reynolds, Jonathan Jackson, Glenda Riordan, Mrs Linda Question put, That the amendment be made. James, Mrs Siân C. Ritchie, Ms Margaret The House divided: Ayes 241, Noes 291. Jamieson, Cathy Robertson, Angus Jarvis, Dan Robertson, John Division No. 241] [7.47 pm Johnson, rh Alan Rotheram, Steve Johnson, Diana Roy, Mr Frank AYES Jones, Helen Roy, Lindsay Abbott, Ms Diane Cunningham, Alex Jones, Mr Kevan Ruane, Chris Abrahams, Debbie Cunningham, Mr Jim Jones, Susan Elan Ruddock, rh Dame Joan Ainsworth, rh Mr Bob Cunningham, Sir Tony Jowell, rh Dame Tessa Sarwar, Anas Alexander, rh Mr Douglas Curran, Margaret Kane, Mike Sawford, Andy Alexander, Heidi Dakin, Nic Kaufman, rh Sir Gerald Seabeck, Alison Ali, Rushanara Danczuk, Simon Keeley, Barbara Shannon, Jim Allen, Mr Graham David, Wayne Kendall, Liz Sharma, Mr Virendra Ashworth, Jonathan Davidson, Mr Ian Khan, rh Sadiq Sheerman, Mr Barry Austin, Ian Davies, Geraint Lammy, rh Mr David Sheridan, Jim Bailey, Mr Adrian De Piero, Gloria Lavery, Ian Shuker, Gavin Bain, Mr William Denham, rh Mr John Leslie, Chris Skinner, Mr Dennis Balls, rh Ed Dobson, rh Frank Lewell-Buck, Mrs Emma Slaughter, Mr Andy Banks, Gordon Docherty, Thomas Lewis, Mr Ivan Smith, rh Mr Andrew Barron, rh Kevin Donaldson, rh Mr Jeffrey M. Llwyd, rh Mr Elfyn Smith, Angela Beckett, rh Margaret Donohoe, Mr Brian H. Love, Mr Andrew Smith, Nick Begg, Dame Anne Doran, Mr Frank Lucas, Caroline Smith, Owen Benn, rh Hilary Dowd, Jim Lucas, Ian Spellar, rh Mr John Benton, Mr Joe Doyle, Gemma MacNeil, Mr Angus Brendan Stringer, Graham Berger, Luciana Dromey, Jack Mactaggart, Fiona Stuart, Ms Gisela Betts, Mr Clive Dugher, Michael Mahmood, Shabana Sutcliffe, Mr Gerry Blackman-Woods, Roberta Durkan, Mark Malhotra, Seema Tami, Mark Blears, rh Hazel Eagle, Ms Angela Mann, John Thomas, Mr Gareth Blenkinsop, Tom Eagle, Maria Marsden, Mr Gordon Thornberry, Emily Blomfield, Paul Edwards, Jonathan McCabe, Steve Timms, rh Stephen Blunkett, rh Mr David Efford, Clive McCann, Mr Michael Trickett, Jon Bradshaw, rh Mr Ben Elliott, Julie McClymont, Gregg Turner, Karl Brennan, Kevin Ellman, Mrs Louise McCrea, Dr William Twigg, Derek Brown, Lyn Engel, Natascha McDonagh, Siobhain Twigg, Stephen Brown, rh Mr Nicholas Esterson, Bill McDonald, Andy Umunna, Mr Chuka Brown, Mr Russell Evans, Chris McFadden, rh Mr Pat Vaz, rh Keith Bryant, Chris Farrelly, Paul McGovern, Alison Vaz, Valerie Buck, Ms Karen Field, rh Mr Frank McGovern, Jim Walley, Joan Burden, Richard Fitzpatrick, Jim McGuire, rh Mrs Anne Watson, Mr Tom McKechin, Ann Burnham, rh Andy Flello, Robert Watts, Mr Dave Byrne, rh Mr Liam Flint, rh Caroline McKenzie, Mr Iain Weir, Mr Mike Campbell, rh Mr Alan Fovargue, Yvonne McKinnell, Catherine Whiteford, Dr Eilidh Campbell, Mr Ronnie Francis, Dr Hywel Meacher, rh Mr Michael Whitehead, Dr Alan Champion, Sarah Gapes, Mike Meale, Sir Alan Williams, Hywel Chapman, Jenny Gardiner, Barry Mearns, Ian Williamson, Chris Clarke, rh Mr Tom Gilmore, Sheila Miliband, rh Edward Wilson, Phil Clwyd, rh Ann Glass, Pat Miller, Andrew Winnick, Mr David Coaker, Vernon Glindon, Mrs Mary Mitchell, Austin Winterton, rh Ms Rosie Coffey, Ann Godsiff, Mr Roger Moon, Mrs Madeleine Wishart, Pete Connarty, Michael Goodman, Helen Morden, Jessica Woodcock, John Cooper, rh Yvette Greatrex, Tom Morrice, Graeme (Livingston) Woodward, rh Mr Shaun Corbyn, Jeremy Green, Kate Morris, Grahame M. Crausby, Mr David Greenwood, Lilian (Easington) Wright, David Creagh, Mary Griffith, Nia Mudie, Mr George Wright, Mr Iain Creasy, Stella Gwynne, Andrew Munn, Meg Tellers for the Ayes: Cruddas, Jon Hain, rh Mr Peter Murray, Ian Stephen Doughty and Cryer, John Hamilton, Mr David Nandy, Lisa Julie Hilling 845 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 846

NOES Jones, Andrew Raab, Mr Dominic Jones, rh Mr David Randall, rh Sir John Adams, Nigel Dorries, Nadine Kawczynski, Daniel Reckless, Mark Afriyie, Adam Doyle-Price, Jackie Kelly, Chris Redwood, rh Mr John Aldous, Peter Drax, Richard Kirby, Simon Rees-Mogg, Jacob Alexander, rh Danny Duddridge, James Knight, rh Sir Greg Reevell, Simon Andrew, Stuart Duncan Smith, rh Mr Iain Kwarteng, Kwasi Reid, Mr Alan Arbuthnot, rh Mr James Dunne, Mr Philip Lancaster, Mark Robertson, Mr Bacon, Mr Richard Ellis, Michael Lansley, rh Mr Andrew Laurence Baker, Norman Ellison, Jane Leadsom, Andrea Rudd, Amber Baker, Steve Elphicke, Charlie Lee, Jessica Ruffley, Mr David Baldry, rh Sir Tony Eustice, George Lee, Dr Phillip Rutley, David Barclay, Stephen Evans, Graham Leech, Mr John Sanders, Mr Adrian Barker, rh Gregory Evans, Jonathan Lefroy, Jeremy Sandys, Laura Bebb, Guto Evennett, Mr David Leigh, Sir Edward Scott, Mr Lee Beith, rh Sir Alan Fabricant, Michael Leslie, Charlotte Selous, Andrew Bellingham, Mr Henry Field, Mark Letwin, rh Mr Oliver Shapps, rh Grant Benyon, Richard Foster, rh Mr Don Lewis, Brandon Sharma, Alok Beresford, Sir Paul Fox,rhDrLiam Liddell-Grainger, Mr Ian Shelbrooke, Alec Berry, Jake Francois, rh Mr Mark Lilley, rh Mr Peter Shepherd, Sir Richard Bingham, Andrew Freer, Mike Lloyd, Stephen Simmonds, Mark Binley, Mr Brian Fuller, Richard Loughton, Tim Simpson, Mr Keith Blackman, Bob Gale, Sir Roger Luff, Sir Peter Skidmore, Chris Blackwood, Nicola Garnier, Sir Edward Lumley, Karen Smith, Chloe Blunt, Crispin Garnier, Mark Macleod, Mary Smith, Henry Boles, Nick Gauke, Mr David Maude, rh Mr Francis Smith, Julian Bottomley, Sir Peter George, Andrew May, rh Mrs Theresa Smith, Sir Robert Bradley, Karen Gibb, Mr Nick Maynard, Paul Soames, rh Nicholas Brady, Mr Graham Gillan, rh Mrs Cheryl McCartney, Jason Spelman, rh Mrs Brake, rh Tom Glen, John McCartney, Karl Caroline Bray, Angie Gove, rh Michael McIntosh, Miss Anne Spencer, Mr Mark Brazier, Mr Julian Grant, Mrs Helen McPartland, Stephen Stanley, rh Sir John Bridgen, Andrew Gray, Mr James McVey, rh Esther Stewart, Bob Brine, Steve Grayling, rh Chris Metcalfe, Stephen Stewart, Iain Brokenshire, James Green, rh Damian Miller, rh Maria Stewart, Rory Brooke, Annette Grieve, rh Mr Dominic Mills, Nigel Stride, Mel Browne, Mr Jeremy Griffiths, Andrew Milton, Anne Stuart, Mr Graham Bruce, Fiona Gyimah, Mr Sam Moore, rh Michael Stunell, rh Sir Andrew Buckland, Mr Robert Halfon, Robert Mordaunt, Penny Sturdy, Julian Burley, Mr Aidan Hames, Duncan Morgan, Nicky Swales, Ian Burns, Conor Hammond, Stephen Morris, Anne Marie Swayne, rh Mr Burns, rh Mr Simon Hancock, Matthew Morris, David Desmond Burrowes, Mr David Hands, rh Greg Morris, James Syms, Mr Robert Burstow, rh Paul Harper, Mr Mark Mosley, Stephen Tapsell, rh Sir Peter Burt, Lorely Harrington, Richard Mowat, David Thornton, Mike Byles, Dan Harris, Rebecca Mulholland, Greg Thurso, John Cable, rh Vince Hart, Simon Munt, Tessa Timpson, Mr Edward Cairns, Alun Harvey, Sir Nick Murray, Sheryll Tomlinson, Justin Campbell, rh Sir Menzies Haselhurst, rh Sir Alan Neill, Robert Tredinnick, David Carmichael, rh Mr Alistair Heald, Oliver Newmark, Mr Brooks Truss, Elizabeth Carmichael, Neil Heath, Mr David Newton, Sarah Turner, Mr Andrew Carswell, Mr Douglas Heaton-Harris, Chris Nokes, Caroline Tyrie, Mr Andrew Cash, Mr William Hemming, John Nuttall, Mr David Uppal, Paul Chishti, Rehman Henderson, Gordon O’Brien, rh Mr Stephen Vara, Mr Shailesh Chope, Mr Christopher Herbert, rh Nick Offord, Dr Matthew Vickers, Martin Clappison, Mr James Hinds, Damian Ollerenshaw, Eric Walker, Mr Charles Clark, rh Greg Hoban, Mr Mark Opperman, Guy Walker, Mr Robin Clifton-Brown, Geoffrey Hollingbery, George Ottaway, rh Sir Richard Wallace, Mr Ben Coffey, Dr Thérèse Hollobone, Mr Philip Paice, rh Sir James Ward, Mr David Collins, Damian Holloway, Mr Adam Parish, Neil Watkinson, Dame Angela Cox, Mr Geoffrey Horwood, Martin Crabb, Stephen Howarth, Sir Gerald Patel, Priti Weatherley, Mike Crockart, Mike Howell, John Pawsey, Mark Webb, Steve Crouch, Tracey Hughes, rh Simon Penrose, John Wharton, James Davey, rh Mr Edward Hunt, rh Mr Jeremy Percy, Andrew Wheeler, Heather Davies, David T. C. Hunter, Mark Perry, Claire White, Chris (Monmouth) Huppert, Dr Julian Phillips, Stephen Whittaker, Craig Davies, Glyn Hurd, Mr Nick Pickles, rh Mr Eric Whittingdale, Mr John Davies, Philip Jackson, Mr Stewart Pincher, Christopher Wiggin, Bill Davis, rh Mr David James, Margot Poulter, Dr Daniel Willetts, rh Mr David de Bois, Nick Jenkin, Mr Bernard Prisk, Mr Mark Williams, Mr Mark Dinenage, Caroline Johnson, Gareth Pritchard, Mark Williams, Roger Dorrell, rh Mr Stephen Johnson, Joseph Pugh, John Williams, Stephen 847 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 848

Williamson, Gavin Yeo, Mr Tim Gyimah, Mr Sam Milton, Anne Willott, Jenny Young, rh Sir George Halfon, Robert Moore, rh Michael Wilson, Mr Rob Zahawi, Nadhim Hames, Duncan Mordaunt, Penny Wollaston, Dr Sarah Tellers for the Noes: Hammond, Stephen Morgan, Nicky Wright, Jeremy Harriett Baldwin and Hancock, Matthew Morris, Anne Marie Wright, Simon Gavin Barwell Hands, rh Greg Morris, David Harper, Mr Mark Morris, James Harrington, Richard Mosley, Stephen Question accordingly negatived. Harris, Rebecca Mowat, David Hart, Simon Mulholland, Greg Question put forthwith (Standing Order No. 62(2), Harvey, Sir Nick Munt, Tessa That the Bill be now read a Second time. Haselhurst, rh Sir Alan Murray, Sheryll Heald, Oliver Neill, Robert The House divided: Ayes 292, Noes 235. Heath, Mr David Newmark, Mr Brooks Heaton-Harris, Chris Newton, Sarah Division No. 242] [7.59 pm Hemming, John Nokes, Caroline Henderson, Gordon Nuttall, Mr David AYES Herbert, rh Nick O’Brien, rh Mr Stephen Adams, Nigel Clark, rh Greg Hinds, Damian Offord, Dr Matthew Afriyie, Adam Clifton-Brown, Geoffrey Hoban, Mr Mark Ollerenshaw, Eric Aldous, Peter Coffey, Dr Thérèse Hollingbery, George Opperman, Guy Alexander, rh Danny Collins, Damian Hollobone, Mr Philip Ottaway, rh Sir Richard Andrew, Stuart Cox, Mr Geoffrey Holloway, Mr Adam Paice, rh Sir James Arbuthnot, rh Mr James Crabb, Stephen Horwood, Martin Parish, Neil Bacon, Mr Richard Crockart, Mike Howarth, Sir Gerald Patel, Priti Baker, Norman Crouch, Tracey Howell, John Pawsey, Mark Baker, Steve Davey, rh Mr Edward Hughes, rh Simon Penrose, John Baldry, rh Sir Tony Davies, David T. C. Hunt, rh Mr Jeremy Percy, Andrew Barclay, Stephen (Monmouth) Hunter, Mark Perry, Claire Barker, rh Gregory Davies, Glyn Huppert, Dr Julian Phillips, Stephen Bebb, Guto Davies, Philip Hurd, Mr Nick Pickles, rh Mr Eric Beith, rh Sir Alan Davis, rh Mr David Jackson, Mr Stewart Pincher, Christopher Bellingham, Mr Henry de Bois, Nick James, Margot Poulter, Dr Daniel Benyon, Richard Dinenage, Caroline Jenkin, Mr Bernard Prisk, Mr Mark Beresford, Sir Paul Donaldson, rh Mr Jeffrey Johnson, Gareth Pritchard, Mark Berry, Jake M. Johnson, Joseph Pugh, John Bingham, Andrew Dorrell, rh Mr Stephen Jones, Andrew Raab, Mr Dominic Binley, Mr Brian Dorries, Nadine Jones, rh Mr David Randall, rh Sir John Blackman, Bob Doyle-Price, Jackie Kawczynski, Daniel Reckless, Mark Blackwood, Nicola Drax, Richard Kelly, Chris Redwood, rh Mr John Blunt, Crispin Duddridge, James Kirby, Simon Rees-Mogg, Jacob Boles, Nick Duncan Smith, rh Mr Iain Knight, rh Sir Greg Reevell, Simon Bottomley, Sir Peter Dunne, Mr Philip Kwarteng, Kwasi Reid, Mr Alan Bradley, Karen Ellis, Michael Lancaster, Mark Robertson, Mr Laurence Brady, Mr Graham Ellison, Jane Lansley, rh Mr Andrew Rudd, Amber Brake, rh Tom Elphicke, Charlie Leadsom, Andrea Ruffley, Mr David Bray, Angie Eustice, George Lee, Jessica Rutley, David Brazier, Mr Julian Evans, Graham Lee, Dr Phillip Sanders, Mr Adrian Bridgen, Andrew Evans, Jonathan Leech, Mr John Sandys, Laura Brine, Steve Evennett, Mr David Lefroy, Jeremy Scott, Mr Lee Brokenshire, James Fabricant, Michael Leigh, Sir Edward Selous, Andrew Brooke, Annette Field, Mark Leslie, Charlotte Shannon, Jim Browne, Mr Jeremy Foster, rh Mr Don Letwin, rh Mr Oliver Shapps, rh Grant Bruce, Fiona Fox,rhDrLiam Lewis, Brandon Sharma, Alok Buckland, Mr Robert Francois, rh Mr Mark Liddell-Grainger, Mr Ian Shelbrooke, Alec Burley, Mr Aidan Freer, Mike Lilley, rh Mr Peter Shepherd, Sir Richard Burns, Conor Fuller, Richard Lloyd, Stephen Simmonds, Mark Burns, rh Mr Simon Gale, Sir Roger Loughton, Tim Simpson, Mr Keith Burrowes, Mr David Garnier, Sir Edward Luff, Sir Peter Skidmore, Chris Burstow, rh Paul Garnier, Mark Lumley, Karen Smith, Chloe Burt, Lorely Gauke, Mr David Macleod, Mary Smith, Henry Byles, Dan George, Andrew Maude, rh Mr Francis Smith, Julian Cable, rh Vince Gibb, Mr Nick Maynard, Paul Smith, Sir Robert Cairns, Alun Gillan, rh Mrs Cheryl McCartney, Jason Soames, rh Nicholas Campbell, rh Sir Menzies Glen, John McCartney, Karl Spelman, rh Mrs Caroline Carmichael, rh Mr Alistair Gove, rh Michael McCrea, Dr William Spencer, Mr Mark Carmichael, Neil Grant, Mrs Helen McIntosh, Miss Anne Stanley, rh Sir John Carswell, Mr Douglas Gray, Mr James McPartland, Stephen Stewart, Bob Cash, Mr William Grayling, rh Chris McVey, rh Esther Stewart, Iain Chishti, Rehman Green, rh Damian Metcalfe, Stephen Stewart, Rory Chope, Mr Christopher Grieve, rh Mr Dominic Miller, rh Maria Stride, Mel Clappison, Mr James Griffiths, Andrew Mills, Nigel Stuart, Mr Graham 849 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 850

Stunell, rh Sir Andrew Wharton, James Glass, Pat Mitchell, Austin Sturdy, Julian Wheeler, Heather Glindon, Mrs Mary Moon, Mrs Madeleine Swales, Ian White, Chris Godsiff, Mr Roger Morden, Jessica Swayne, rh Mr Desmond Whittaker, Craig Goodman, Helen Morrice, Graeme (Livingston) Syms, Mr Robert Whittingdale, Mr Greatrex, Tom Morris, Grahame M. Thornton, Mike John Green, Kate (Easington) Thurso, John Wiggin, Bill Greenwood, Lilian Mudie, Mr George Timpson, Mr Edward Willetts, rh Mr David Griffith, Nia Munn, Meg Tomlinson, Justin Williams, Mr Mark Gwynne, Andrew Murray, Ian Tredinnick, David Williams, Roger Hain, rh Mr Peter Nandy, Lisa Truss, Elizabeth Williams, Stephen Hamilton, Mr David Nash, Pamela Turner, Mr Andrew Williamson, Gavin Hamilton, Fabian O’Donnell, Fiona Tyrie, Mr Andrew Willott, Jenny Hanson, rh Mr David Onwurah, Chi Uppal, Paul Wilson, Mr Rob Harris, Mr Tom Osborne, Sandra Vara, Mr Shailesh Wollaston, Dr Sarah Havard, Mr Dai Owen, Albert Vickers, Martin Wright, Jeremy Healey, rh John Pearce, Teresa Walker, Mr Charles Wright, Simon Hendrick, Mark Perkins, Toby Hepburn, Mr Stephen Phillipson, Bridget Walker, Mr Robin Yeo, Mr Tim Wallace, Mr Ben Heyes, David Raynsford, rh Mr Nick Young, rh Sir George Ward, Mr David Hodgson, Mrs Sharon Reed, Mr Jamie Zahawi, Nadhim Watkinson, Dame Hoey, Kate Reed, Mr Steve Angela Tellers for the Ayes: Hopkins, Kelvin Reeves, Rachel Weatherley, Mike Harriett Baldwin and Howarth, rh Mr George Reynolds, Emma Webb, Steve Gavin Barwell Hunt, Tristram Reynolds, Jonathan Irranca-Davies, Huw Riordan, Mrs Linda NOES Jackson, Glenda Ritchie, Ms Margaret James, Mrs Siân C. Robertson, Angus Abbott, Ms Diane Cooper, rh Yvette Jamieson, Cathy Robertson, John Abrahams, Debbie Corbyn, Jeremy Jarvis, Dan Rotheram, Steve Ainsworth, rh Mr Bob Crausby, Mr David Johnson, rh Alan Roy, Mr Frank Alexander, rh Mr Douglas Creagh, Mary Johnson, Diana Roy, Lindsay Alexander, Heidi Creasy, Stella Jones, Helen Ruane, Chris Ali, Rushanara Cruddas, Jon Jones, Mr Kevan Ruddock, rh Dame Allen, Mr Graham Cryer, John Jones, Susan Elan Joan Ashworth, Jonathan Cunningham, Alex Kane, Mike Sarwar, Anas Austin, Ian Cunningham, Mr Jim Kaufman, rh Sir Gerald Sawford, Andy Bailey, Mr Adrian Cunningham, Sir Tony Keeley, Barbara Seabeck, Alison Bain, Mr William Curran, Margaret Kendall, Liz Sharma, Mr Virendra Balls, rh Ed Dakin, Nic Khan, rh Sadiq Sheerman, Mr Barry Banks, Gordon Danczuk, Simon Lammy, rh Mr David Sheridan, Jim Barron, rh Kevin David, Wayne Lavery, Ian Shuker, Gavin Beckett, rh Margaret Davidson, Mr Ian Leslie, Chris Skinner, Mr Dennis Begg, Dame Anne Davies, Geraint Lewell-Buck, Mrs Emma Slaughter, Mr Andy Benn, rh Hilary De Piero, Gloria Lewis, Mr Ivan Smith, rh Mr Andrew Benton, Mr Joe Denham, rh Mr John Llwyd, rh Mr Elfyn Smith, Angela Berger, Luciana Dobson, rh Frank Love, Mr Andrew Smith, Nick Betts, Mr Clive Docherty, Thomas Lucas, Caroline Smith, Owen Blackman-Woods, Donohoe, Mr Brian H. Lucas, Ian Spellar, rh Mr John Roberta Doran, Mr Frank MacNeil, Mr Angus Stringer, Graham Blears, rh Hazel Dowd, Jim Brendan Stuart, Ms Gisela Blenkinsop, Tom Doyle, Gemma Mactaggart, Fiona Sutcliffe, Mr Gerry Blomfield, Paul Dromey, Jack Mahmood, Shabana Tami, Mark Blunkett, rh Mr David Dugher, Michael Malhotra, Seema Thomas, Mr Gareth Bradshaw, rh Mr Ben Durkan, Mark Mann, John Thornberry, Emily Brennan, Kevin Eagle, Ms Angela Marsden, Mr Gordon Timms, rh Stephen Brown, Lyn Eagle, Maria McCabe, Steve Trickett, Jon Brown, rh Mr Nicholas Edwards, Jonathan McCann, Mr Michael Turner, Karl Brown, Mr Russell Efford, Clive McClymont, Gregg Twigg, Derek Bryant, Chris Ellman, Mrs Louise McDonagh, Siobhain Twigg, Stephen Buck, Ms Karen Engel, Natascha McDonald, Andy Umunna, Mr Chuka Burden, Richard Esterson, Bill McFadden, rh Mr Pat Vaz, rh Keith Burnham, rh Andy Evans, Chris McGovern, Alison Vaz, Valerie Byrne, rh Mr Liam Farrelly, Paul McGovern, Jim Walley, Joan Campbell, rh Mr Alan Field, rh Mr Frank McGuire, rh Mrs Anne Watts, Mr Dave Campbell, Mr Ronnie Fitzpatrick, Jim McKechin, Ann Weir, Mr Mike Champion, Sarah Flello, Robert McKenzie, Mr Iain Whiteford, Dr Eilidh Chapman, Jenny Flint, rh Caroline McKinnell, Catherine Whitehead, Dr Alan Clarke, rh Mr Tom Fovargue, Yvonne Meacher, rh Mr Michael Williams, Hywel Clwyd, rh Ann Francis, Dr Hywel Meale, Sir Alan Williamson, Chris Coaker, Vernon Gapes, Mike Mearns, Ian Wilson, Phil Coffey, Ann Gardiner, Barry Miliband, rh Edward Winnick, Mr David Connarty, Michael Gilmore, Sheila Miller, Andrew Winterton, rh Ms Rosie 851 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 852

Wishart, Pete Wright, Mr Iain Table Woodcock, John Tellers for the Noes: Woodward, rh Mr Shaun Stephen Doughty and New Clauses and new Schedules 8.00 pm on the second day Wright, David Julie Hilling relating to air passenger duty; Clauses 72 to 74 Question accordingly agreed to. 4. Proceedings in the Public Bill Committee shall (so far as not Bill read a Second time. previously concluded) be brought to a conclusion on Tuesday 17 June 2014. 5. The Public Bill Committee shall have leave to sit twice on FINANCE (NO. 2) BILL (PROGRAMME) the first day on which it meets. Motion made, and Question put forthwith (Standing 6. When the provisions of the Bill considered respectively by the Committee of the whole House and by the Public Bill Order No. 83A(7)), Committee have been reported to the House, the Bill shall be That the following provisions shall apply to the Finance proceeded with as if it had been reported as a whole to the House (No. 2) Bill: from the Public Bill Committee. Committal Consideration and Third Reading 1. The following shall be committed to a Committee of the 7. Proceedings on consideration and on Third Reading shall be whole House: completed in two days. (a) Clauses 1, 5 to 7, 11, 72 to 74 and 112; 8. Standing Order No. 83B (programming committees) shall not apply to proceedings on Consideration and Third Reading.— (b) Schedule 1; (Mr Evennett.) (c) any new Clauses, and any new Schedules, relating to: Question agreed to. (i) tax relief in connection with the costs of childcare, or (ii) income tax allowances for parties to a marriage or DEFERRED DIVISIONS civil partnership, or Motion made, and Question put forthwith (Standing (iii) air passenger duty, or Order No. 41A(3)), (iv) the rate of the bank levy, or That, at this day’s sitting, Standing Order No. 41A (Deferred (v) the subject matter of Clause 1, or divisions) shall not apply to the motion in the name of Mr Chancellor (vi) the subject matter of Clauses 5 to 7 and Schedule 1. of the Exchequer relating to the Finance (No. 2) Bill (Carry-over).— (Mr Evennett.) 2. The remainder of the Bill shall be committed to a Public Bill Committee. Question agreed to. Proceedings in Committee 3. (1) Proceedings in Committee of the whole House shall be FINANCE (NO. 2) BILL (CARRY-OVER) completed in two days. Motion made, and Question put forthwith (Standing (2) Those proceedings shall be taken on each of those days as Order No. 80B(1)(a)), shown in the first column of the following table and in the order That if, at the conclusion of this Session of Parliament, proceedings so shown. on the Finance (No. 2) Bill have not been completed, they shall be (3) Each part of the proceedings shall (so far as not previously resumed in the next Session.—(Mr Evennett.) concluded) be brought to a conclusion at the time specified in relation to it in the second column of the Table. The House divided: Ayes 273, Noes 223. (4) Standing Order No. 83B (programming committees) shall Division No. 243] [8.12 pm not apply to proceedings in Committee of the whole House. AYES Table Adams, Nigel Bradley, Karen Afriyie, Adam Brady, Mr Graham Proceedings Time for conclusion of proceedings Aldous, Peter Brake, rh Tom First day Alexander, rh Danny Bray, Angie New Clauses and new Schedules 3.30 pm on the first day Andrew, Stuart Brazier, Mr Julian relating to the subject matter Bacon, Mr Richard Bridgen, Andrew of Clauses 5 to 7 and Schedule Baker, Norman Brine, Steve 1; Clauses 5 to 7; Schedule 1 Baker, Steve Brokenshire, James New Clauses and new Schedules 5.30 pm on the first day Baldry, rh Sir Tony Brooke, Annette relating to the subject matter Barclay, Stephen Browne, Mr Jeremy of Clause1; Clause 1 Barker, rh Gregory Bruce, Fiona New Clauses and new Schedules 7.30 pm on the first day Bebb, Guto Buckland, Mr Robert relating to tax relief in connection Beith, rh Sir Alan Burns, Conor with the costs of childcare Bellingham, Mr Henry Burns, rh Mr Simon Second day Benyon, Richard Burrowes, Mr David Beresford, Sir Paul Burstow, rh Paul New Clauses and new Schedules 4.00 pm on the second day relating to income tax allowances Berry, Jake Burt, Lorely for parties to a marriage or Bingham, Andrew Byles, Dan civil Binley, Mr Brian Cairns, Alun partnership; Clause 11 Blackman, Bob Campbell, rh Sir Menzies Blackwood, Nicola Carmichael, rh Mr Alistair New Clauses and new Schedules 6.00 pm on the second day relating to the rate of the bank Blunt, Crispin Carmichael, Neil levy; Clause 112 Boles, Nick Cash, Mr William Bottomley, Sir Peter Chishti, Rehman 853 Finance (No. 2) Bill1 APRIL 2014 Finance (No. 2) Bill 854

Chope, Mr Christopher Holloway, Mr Adam Percy, Andrew Stunell, rh Sir Andrew Clappison, Mr James Horwood, Martin Perry, Claire Sturdy, Julian Clark, rh Greg Howarth, Sir Gerald Phillips, Stephen Swales, Ian Clifton-Brown, Geoffrey Howell, John Pickles, rh Mr Eric Swayne, rh Mr Desmond Coffey, Dr Thérèse Hunt, rh Mr Jeremy Pincher, Christopher Syms, Mr Robert Collins, Damian Hunter, Mark Poulter, Dr Daniel Thornton, Mike Crabb, Stephen Huppert, Dr Julian Prisk, Mr Mark Thurso, John Crockart, Mike Jackson, Mr Stewart Pritchard, Mark Timpson, Mr Edward Crouch, Tracey James, Margot Pugh, John Tomlinson, Justin Davey, rh Mr Edward Jenkin, Mr Bernard Randall, rh Sir John Tredinnick, David Davies, David T. C. Johnson, Gareth Reckless, Mark Truss, Elizabeth (Monmouth) Jones, Andrew Redwood, rh Mr John Turner, Mr Andrew Davies, Glyn Jones, rh Mr David Rees-Mogg, Jacob Tyrie, Mr Andrew Davies, Philip Kawczynski, Daniel Reevell, Simon Uppal, Paul Davis, rh Mr David Kelly, Chris Reid, Mr Alan Vara, Mr Shailesh de Bois, Nick Kirby, Simon Robertson, Mr Laurence Vickers, Martin Dinenage, Caroline Knight, rh Sir Greg Rudd, Amber Walker, Mr Charles Donaldson, rh Mr Jeffrey M. Kwarteng, Kwasi Ruffley, Mr David Walker, Mr Robin Dorrell, rh Mr Stephen Lancaster, Mark Rutley, David Ward, Mr David Dorries, Nadine Lansley, rh Mr Andrew Sanders, Mr Adrian Watkinson, Dame Angela Doyle-Price, Jackie Leadsom, Andrea Sandys, Laura Weatherley, Mike Drax, Richard Lee, Jessica Scott, Mr Lee Webb, Steve Duddridge, James Lee, Dr Phillip Selous, Andrew Wharton, James Duncan Smith, rh Mr Iain Leech, Mr John Shannon, Jim Wheeler, Heather Dunne, Mr Philip Lefroy, Jeremy Shapps, rh Grant White, Chris Ellis, Michael Leigh, Sir Edward Sharma, Alok Whittaker, Craig Ellison, Jane Leslie, Charlotte Shelbrooke, Alec Wiggin, Bill Elphicke, Charlie Letwin, rh Mr Oliver Simmonds, Mark Willetts, rh Mr David Eustice, George Lewis, Brandon Simpson, Mr Keith Williams, Mr Mark Evans, Graham Lilley, rh Mr Peter Skidmore, Chris Williams, Roger Evans, Jonathan Lloyd, Stephen Smith, Chloe Williams, Stephen Evennett, Mr David Loughton, Tim Smith, Henry Williamson, Gavin Fabricant, Michael Luff, Sir Peter Smith, Julian Willott, Jenny Field, Mark Lumley, Karen Smith, Sir Robert Wilson, Mr Rob Foster, rh Mr Don Macleod, Mary Soames, rh Nicholas Wollaston, Dr Sarah Fox,rhDrLiam Maude, rh Mr Francis Spelman, rh Mrs Caroline Wright, Jeremy Francois, rh Mr Mark Maynard, Paul Spencer, Mr Mark Wright, Simon Freer, Mike McCartney, Jason Stanley, rh Sir John Young, rh Sir George Fuller, Richard McCartney, Karl Stewart, Bob Zahawi, Nadhim Gale, Sir Roger McCrea, Dr William Stewart, Iain Garnier, Sir Edward McIntosh, Miss Anne Stewart, Rory Tellers for the Ayes: Garnier, Mark McPartland, Stephen Stride, Mel Harriett Baldwin and Gauke, Mr David McVey, rh Esther Stuart, Mr Graham Gavin Barwell Gibb, Mr Nick Metcalfe, Stephen Gillan, rh Mrs Cheryl Miller, rh Maria NOES Glen, John Mills, Nigel Grant, Mrs Helen Milton, Anne Abbott, Ms Diane Brown, Lyn Gray, Mr James Moore, rh Michael Abrahams, Debbie Brown, rh Mr Nicholas Grayling, rh Chris Mordaunt, Penny Ainsworth, rh Mr Bob Brown, Mr Russell Green, rh Damian Morgan, Nicky Alexander, rh Mr Douglas Buck, Ms Karen Griffiths, Andrew Morris, Anne Marie Alexander, Heidi Burden, Richard Gyimah, Mr Sam Morris, David Ali, Rushanara Burnham, rh Andy Halfon, Robert Morris, James Allen, Mr Graham Byrne, rh Mr Liam Hames, Duncan Mosley, Stephen Ashworth, Jonathan Campbell, rh Mr Alan Hammond, Stephen Mulholland, Greg Austin, Ian Campbell, Mr Ronnie Hancock, Matthew Munt, Tessa Bailey, Mr Adrian Champion, Sarah Hands, rh Greg Murray, Sheryll Bain, Mr William Chapman, Jenny Harper, Mr Mark Neill, Robert Balls, rh Ed Clarke, rh Mr Tom Harrington, Richard Newmark, Mr Brooks Banks, Gordon Clwyd, rh Ann Harris, Rebecca Newton, Sarah Barron, rh Kevin Coaker, Vernon Hart, Simon Nokes, Caroline Begg, Dame Anne Coffey, Ann Harvey, Sir Nick Nuttall, Mr David Benn, rh Hilary Connarty, Michael Haselhurst, rh Sir Alan O’Brien, rh Mr Stephen Benton, Mr Joe Cooper, rh Yvette Heald, Oliver Offord, Dr Matthew Berger, Luciana Corbyn, Jeremy Heath, Mr David Ollerenshaw, Eric Betts, Mr Clive Crausby, Mr David Heaton-Harris, Chris Opperman, Guy Blackman-Woods, Roberta Creagh, Mary Hemming, John Ottaway, rh Sir Richard Blears, rh Hazel Creasy, Stella Herbert, rh Nick Paice, rh Sir James Blenkinsop, Tom Cruddas, Jon Hinds, Damian Parish, Neil Blomfield, Paul Cryer, John Hoban, Mr Mark Patel, Priti Blunkett, rh Mr David Cunningham, Alex Hollingbery, George Pawsey, Mark Bradshaw, rh Mr Ben Cunningham, Mr Jim Hollobone, Mr Philip Penrose, John Brennan, Kevin Cunningham, Sir Tony 855 Finance (No. 2) Bill 1 APRIL 2014 856

Curran, Margaret Jarvis, Dan Robertson, Angus Timms, rh Stephen Dakin, Nic Johnson, Diana Robertson, John Trickett, Jon Danczuk, Simon Jones, Helen Rotheram, Steve Turner, Karl David, Wayne Jones, Mr Kevan Roy, Mr Frank Twigg, Derek Davidson, Mr Ian Jones, Susan Elan Roy, Lindsay Umunna, Mr Chuka Davies, Geraint Kane, Mike Ruane, Chris Vaz, rh Keith De Piero, Gloria Kaufman, rh Sir Gerald Ruddock, rh Dame Joan Vaz, Valerie Denham, rh Mr John Keeley, Barbara Sarwar, Anas Walley, Joan Dobson, rh Frank Khan, rh Sadiq Sawford, Andy Watson, Mr Tom Docherty, Thomas Lammy, rh Mr David Seabeck, Alison Watts, Mr Dave Donohoe, Mr Brian H. Lavery, Ian Sharma, Mr Virendra Weir, Mr Mike Doran, Mr Frank Leslie, Chris Sheerman, Mr Barry Whiteford, Dr Eilidh Dowd, Jim Lewell-Buck, Mrs Emma Sheridan, Jim Whitehead, Dr Alan Doyle, Gemma Love, Mr Andrew Shuker, Gavin Williams, Hywel Dromey, Jack Lucas, Caroline Skinner, Mr Dennis Williamson, Chris Dugher, Michael Lucas, Ian Slaughter, Mr Andy Wilson, Phil Durkan, Mark MacNeil, Mr Angus Brendan Smith, rh Mr Andrew Winnick, Mr David Eagle, Ms Angela Mactaggart, Fiona Smith, Angela Winterton, rh Ms Rosie Eagle, Maria Mahmood, Shabana Smith, Nick Wishart, Pete Edwards, Jonathan Malhotra, Seema Smith, Owen Woodcock, John Efford, Clive Mann, John Spellar, rh Mr John Woodward, rh Mr Shaun Ellman, Mrs Louise Marsden, Mr Gordon Stringer, Graham Wright, David Engel, Natascha McCabe, Steve Stuart, Ms Gisela Wright, Mr Iain Esterson, Bill McCann, Mr Michael Sutcliffe, Mr Gerry Evans, Chris McClymont, Gregg Tami, Mark Tellers for the Noes: Farrelly, Paul McDonagh, Siobhain Thomas, Mr Gareth Stephen Doughty and Field, rh Mr Frank McDonald, Andy Thornberry, Emily Julie Hilling Fitzpatrick, Jim McFadden, rh Mr Pat Flello, Robert McGovern, Alison Question accordingly agreed to. Flint, rh Caroline McGovern, Jim Fovargue, Yvonne McGuire, rh Mrs Anne Francis, Dr Hywel McKechin, Ann Business without Debate Gapes, Mike McKenzie, Mr Iain Gardiner, Barry McKinnell, Catherine Gilmore, Sheila Meacher, rh Mr Michael DELEGATED LEGISLATION Glass, Pat Meale, Sir Alan Motion made, and Question put forthwith (Standing Glindon, Mrs Mary Mearns, Ian Order No. 118(6)), Godsiff, Mr Roger Miller, Andrew Goodman, Helen Mitchell, Austin DANGEROUS DRUGS Greatrex, Tom Moon, Mrs Madeleine That the Misuse of Drugs Act 1971 (Amendment) (No. 2) Green, Kate Morden, Jessica Order 2014, which was laid before this House on 5 March, be Griffith, Nia Morrice, Graeme (Livingston) approved.—(Mr Evennett.) Gwynne, Andrew Morris, Grahame M. Hain, rh Mr Peter (Easington) Question agreed to. Hamilton, Mr David Munn, Meg Motion made, and Question put forthwith (Standing Hamilton, Fabian Murray, Ian Order No. 118(6)), Hanson, rh Mr David Nandy, Lisa Harris, Mr Tom Nash, Pamela CRIMINAL LAW Havard, Mr Dai O’Donnell, Fiona Healey, rh John Onwurah, Chi That the draft Criminal Justice and Police Act 2001 (Amendment) Order 2013, which was laid before this House on 4 November Hendrick, Mark Osborne, Sandra 2013, be approved.—(Mr Evennett.) Hepburn, Mr Stephen Owen, Albert Heyes, David Pearce, Teresa Question agreed to. Hodgson, Mrs Sharon Perkins, Toby Motion made, and Question put forthwith (Standing Hopkins, Kelvin Phillipson, Bridget Order No. 118(6)), Howarth, rh Mr George Raynsford, rh Mr Nick Irranca-Davies, Huw Reed, Mr Jamie PUBLIC BODIES Jackson, Glenda Reed, Mr Steve James, Mrs Siân C. Reynolds, Emma That the draft Public Bodies (Abolition of the Committee on Jamieson, Cathy Reynolds, Jonathan Agricultural Valuation) Order 2014, which was laid before this (Mr Evennett.) Riordan, Mrs Linda House on 6 February, be approved. Ritchie, Ms Margaret Question agreed to. 857 1 APRIL 2014 Sir Robert Peel Hospital 858

Sir Robert Peel Hospital review that many feel was conducted behind closed doors, Burton Hospitals NHS Foundation Trust, which Motion made, and Question proposed, That this House runs the Peel, has decided to close its day case theatre do now adjourn.—(Mr Evennett.) and surgical ward and is considering withdrawing its endoscopy service. A decision on that service will be 8.24 pm made next month. The closure of the day case theatre alone will affect about 1,400 patients each year. Christopher Pincher (Tamworth) (Con): As our colleagues rush to watch the last half of the Manchester United Although no institution, including the NHS, can be match, I should like to raise an issue of somewhat set in aspic and although hospitals can and must be greater importance to my constituents. Although the prepared to adapt to meet the changing demands of title of the debate is narrow and focuses on the effect on NHS users—for example, the growth in the number of my Tamworth constituency, the wider implications for elderly patient means that hospitals need to make more users of Burton Hospitals NHS Foundation Trust also provision for dementia and palliative care—I am concerned affect the constituents of my hon. Friends the Members that the proposals for the Robert Peel are being hurried for Lichfield (Michael Fabricant), for North West through without the fullest consultation and certainly Leicestershire (Andrew Bridgen), for South Derbyshire without the fullest involvement of the local community (Heather Wheeler) and for Burton (Andrew Griffiths)—I in Tamworth and Fazeley. Although local people are see that my hon. Friend the Member for Burton is in his now being invited to so-called listening events, they are place. about the options for future service provision and not the decisions that have already been made. It appears Andrew Griffiths (Burton) (Con): I thank my hon. that the Burton trust has closed its ears to concerns Friend for giving way and congratulate him on securing about its plans for day surgery. this debate and for being a doughty fighter on behalf of The trust has form. A year ago, it introduced parking his constituents in the provision of health care. He will charges at the Peel hospital with no public consultation know that Queen’s hospital has a deficit of some and with very little notice. The system it introduced was £3.1 million. It has already saved £9.8 million but needs ill-conceived and badly signed, resulting in a large number to save a further £10 million in 2013-14. Given that my of unwarranted fines being levied on some of the most own east Staffordshire clinical commissioning group vulnerable people: the old and frail, concerned relatives inherited a deficit of £8 million— and the lowest paid. Many of those fines have been overturned. More than 3,000 people signed my petition Madam Deputy Speaker (Mrs Eleanor Laing): Order. calling on the trust to rethink its parking proposals and If the hon. Gentleman is making an intervention, I am the trust, to its credit, recognised public concern and is sure he will wish to be brief. If he wishes to make a now in the process of developing a revised parking speech, he will have to have permission to do so. system, yet, like the Bourbons, it seems to have learned nothing and forgotten nothing from that experience. Andrew Griffiths: I am grateful to you for that advice, On 5 February, staff at the Peel hospital were called Madam Deputy Speaker. I was just about to get to the to a meeting to be told that, following what was described crux of the matter. Given that the area is £12 million as an ″extensive review″, the surgical ward would be away from fairer funding, does my hon. Friend agree closed in as little as 12 weeks. They knew nothing of that the health care economy is incredibly fragile locally that review, and neither did anyone else—not me, not and that something needs to be done to help us bridge the local health scrutiny committee, and certainly not that gap in the short term? the wider community. The review took place between October and January behind closed doors and no one Christopher Pincher: I quite agree with my hon. Friend was told. The first the wider community knew was and suggest that we find that way forward, in the first when the story was broken in the Tamworth Herald on case by seeking a meeting with the Secretary of State to 13 February. Yet it was not until 25 March that the trust discuss our concerns about the trust. answered detailed public questions at the Healthy In nearly four years as a Member of Parliament, this Staffordshire scrutiny meeting, which took place not in is the first Adjournment debate I have applied for in the Tamworth, but in Stafford. The impression left is that Chamber. I hope that gives you, Madam Deputy Speaker, the trust has talked to itself, but not to anyone else. and those on the Treasury Bench some indication of the importance that I and my constituents attach to the I have met the chief executive and the operations subject. manager at the Burton Hospitals NHS Foundation Trust and they have assured me that the Robert Peel will The Sir Robert Peel community hospital at Mile Oak not close, that minor injury services will be unaffected, in my constituency provides services for people living in and indeed that new services, such as pressure ulcer and around Tamworth including a round-the-clock minor clinics, may be run out of the hospital. However, I am injuries unit, an X-ray and ultrasound department, an concerned that the very thing my hon. Friend the Minister endoscopy unit and outpatient and day surgery. It also was at pains to stress during the debate on amendments provides award-winning rehabilitation services, care of to the Care Bill on 11 March—indeed, he made the older people and palliative care services. Indeed, the point directly to me during my intervention—that proper award to staff for their innovative work on rehabilitation patient and community consultation must take place was received only two weeks ago. before decisions are made, just is not happening at the The hospital is an important and valued service in Peel hospital. As a result, patients, staff, hospital users, our community. Local residents are very attached to it local councillors and the local community feel that and the medical support it offers to a growing town. changes are being done to them rather than along with They want to be a part of its future, yet as a result of a them after recognising their concerns and their advice. 859 Sir Robert Peel Hospital1 APRIL 2014 Sir Robert Peel Hospital 860

Burton Hospitals NHS Foundation Trust says that case the trust—and local patients and commissioners. demand for the day case theatre has dropped by 30% in Decisions about patient care and NHS services should, the last five years and that 40% of current capacity can where possible, be taken in as open and transparent a be dealt with in GP surgeries. That may well be true. It way as possible. It is important that patient groups and may also be true that commissioning services in GP the wider public are properly consulted in decisions surgeries is cheaper and more convenient for my local about local NHS services. That is clearly outlined in the clinical commissioning group. However, I remain concerned tests for reconfiguration laid down by my right hon. that if this decision is hurried through without proper Friend the Member for South Cambridgeshire (Mr Lansley) consideration and consultation, the problems the hospital when he was Health Secretary earlier in this Parliament. discovered with its car parking arrangements could be My hon. Friend was right to highlight the importance replicated on a far more serious level—that of patient of public and patient engagement in the design of local care. We cannot be sure that all local GPs have the NHS services, in this case for the benefit of his constituents necessary equipment, experience and time to undertake in Tamworth. all the new procedures they may be called upon to The situation at the Sir Robert Peel hospital is of deliver. We need to be sure that Queen’s hospital in course complicated by events that have taken place with Burton and the Good Hope in Birmingham have the the Keogh review, to which I will return in a moment. scope to add to their already demanding schedules The hospital is part of the Burton Hospitals NHS without affecting patient waiting times. At the very least Foundation Trust. It might help the House to understand it means some people may need to travel further, and the situation better if I briefly describe the foundation spend more on their journey, for their scheduled minor trust and some of the issues relating to the way the surgery. For an operation at Queen’s hospital in Burton, Keogh review is affecting services. The foundation trust that means travelling some 18 miles along the A38, provides hospital-based services from four main sites: which, when it is blocked, tends to stay blocked. Burton Hospitals NHS Foundation Trust in Burton-on- I hope my hon. Friend will agree with me that if Trent, with acute hospital services including an emergency Burton Hospitals NHS Foundation Trust believes that department; the treatment centre on the Burton Hospitals services at the Robert Peel must be adapted to meet site, a dedicated centre for day case surgery and treatments; changing needs in the community it serves, it must make the Samuel Johnson community hospital in Lichfield, those changes having first clearly and openly discussed with local services, including a midwifery-led maternity its proposals with the wider community. A handful of unit and a 24/7 minor injuries unit; and the Sir Robert local councillors, important as they undoubtedly are, Peel community hospital in Tamworth. I will say a little simply is not good enough, and it must be careful to more about those services in a moment. analyse and accept the sensible advice of the community, The foundation trust provides a wide range of services including the friends of the local hospital who do so to a population of around 360,000 across south much good work with it. Making its decision at the start Staffordshire, south Derbyshire and north-west Lincolnshire. of the consultation process, rather than at its end, does Over 47,000 planned and emergency admissions, more nothing to engage public confidence; indeed, it makes a than 70,000 A and E attendances and around 13,000 mockery of any consultation. day case procedures take place each year in the foundation I hope that my hon. Friend is prepared to send a clear trust hospitals across all the hospital sites. The Samuel message to Burton Hospitals NHS Foundation Trust, Johnson hospital in Lichfield, as a community hospital, and to others, that while they must continually monitor provides services that are similar to those provided by their services so that they remain relevant to and focused the Sir Robert Peel hospital in Tamworth. Both community on need and so that they deliver the very best patient hospitals had previously been run by the South Staffordshire care, decisions made behind closed doors long before primary care trust. The issue for the foundation trust is anyone is asked their view are not acceptable. The trust therefore much wider than the Sir Robert Peel hospital, board must agree to the widest local consultation, must because it is required to look across the entire population collate and publish feedback from its consultation and it serves and, on the basis of the services commissioned, must be prepared to act on the considered advice of all provide a safe and high-quality service for the benefit of local stakeholders. Only then will people believe that patients. The trust has only comparatively recently become their local hospital is truly their own. responsible for the two community hospitals it operates, both of which it took over in 2011. 8.35 pm Andrew Griffiths: The Minister mentioned that Queen’s The Parliamentary Under-Secretary of State for Health hospital is a Keogh hospital. The staff there are working (Dr Daniel Poulter): I congratulate my hon. Friend the incredibly hard to improve standards and are taking big Member for Tamworth (Christopher Pincher) on securing strides forward. The Minister will have heard about the the debate. I am well aware of his long-standing interest precarious situation in relation to Queen’s and the East in matters affecting his constituency, including his well- Staffordshire clinical commissioning group. My hon. documented support for the Sharon Fox cancer centre. I Friend the Member for Tamworth (Christopher Pincher) fully understand why he has raised the matter of the Sir requested a meeting. Will the Minister agree to meet Robert Peel hospital today. I hope that the discussion me, other colleagues and the team from Queen’s hospital about the future of services in Tamworth and the and the CCG in order to discuss our concerns and find surrounding area will move forward constructively following a solution that improves services locally. this debate—certainly more constructively than it might Dr Poulter: I will be delighted to meet my hon. have done recently. Friends to talk further about local issues. There are Before looking at the local situation in detail, it is long-standing concerns, not least the processes triggered important to say a few words about the importance of by the Keogh review in the trust and the wider health high-quality engagement between the NHS—in this economy. 861 Sir Robert Peel Hospital1 APRIL 2014 Sir Robert Peel Hospital 862

[Dr Poulter] part of meeting the challenge of looking after older people in their own homes. Some such facilities are I turn to the local reconfiguration process. To ensure found at Sir Robert Peel community hospital. I am sure that the foundation trust would continue to provide the that the local population welcome that and believe it best level of service to the local population, the trust important in delivering high-quality health care in the commissioned a report from Deloitte in December 2012. months and years ahead. The intention was to address the long-term challenges There are currently discussions about the relocation faced by the trust by refocusing community services, of day case surgery and there is a review of endoscopy. I such as those provided at the Sir Robert Peel community understand that that would affect about 30 patients a hospital, and concentrating on the most vulnerable week, with services moving to local GP surgeries, Good patient groups. Hope hospital at Sutton Coldfield about eight miles The Deloitte report set out a number of options. away, or the main trust site at Burton. However, as we are all aware, in 2013 the trust was I understand that further changes are being considered inspected under the Keogh review, which we took forward in response to Keogh. However, planning is at a very following the Francis report on Mid Staffordshire early stage. I understand that the trust board will be foundation trust. Burton was inspected because it had receiving an outline paper this coming Thursday and higher than expected mortality rates. The Keogh review that no decisions have yet been taken. I am sure that my was not reassured by what it found. As a result of the hon. Friend will agree that it would be highly inappropriate inspection, the foundation trust was placed in special for me to speculate about what option or options might measures by Monitor, the regulator of foundation trusts. be considered or chosen by the local NHS. I would Monitor continues to work with foundation trusts in certainly not want to suggest that there is a Government- special measures to ensure that they return to safe and preferred option that should be followed; I am not in a efficient services as soon as possible. The Keogh review position to do that. Whitehall micro-management of made six urgent recommendations for Burton. Those the local NHS invariably leads to bad things happening; recommendations have been the drivers for the changes that is what we have tried to avoid through the health at Burton and at the Sir Robert Peel community hospital. reforms that we instigated in 2012. As I said a few Sir Bruce Keogh challenged the foundation trust on minutes ago, such decisions are local decisions and what its long-term plans would be for the community must be seen to be taken by the local NHS and local hospitals. For example, patient activity at both sites in commissioners, in consultation with local patients. Lichfield and Tamworth has been decreasing across minor injuries, in-patient and out-patient services for a Christopher Pincher: Of course my hon. Friend is number of years, and is, I understand, on a steadily absolutely right. These are local decisions for local decreasing trend. There is a need to make changes communities and their local NHS. It is not for Ministers because, as well as the higher than expected mortality to dictate what services should or should not be provided rates, the trust and its local commissioners believe that for any particular hospital; it is for the local community the health needs of the population they serve are changing. to determine that, based on need. Does he agree, however, As a nation, we face changing challenges in health that when the local community decides, it should be care—for example, the demographic pressures imposed based on proper consultation, and that listening exercises by an ageing population. As the health needs of the should be based on what people want and not what the population change, it is right that the services provided clinical professionals and managers want? at local hospitals and in the local health economy also change and that a more integrated approach is taken Dr Poulter: My hon. Friend makes an important between local authorities and the NHS in delivering point. Of course clinical leadership in the NHS is more personalised care, particularly for the frail elderly, important in designing services, but he is absolutely and more care in people’s homes and communities. right that it is important that patients and the public The foundation trust has already responded to the locally are properly consulted in decisions about health Keogh review challenge, although much is still to be care services. That is something that we believe in. Far done. I understand that the reconfiguration to which too often in the past, patients have felt that decision my hon. Friend the Member for Tamworth refers follows making is done to them rather than their being involved on from and continues the response to the Keogh in it. That is exactly why we introduced new tests for review. Certainly, the aims are the same—to ensure that reconfiguration of services that put patient and public health care services are of high quality and meet the consultation at the very heart of designing how medical needs of local patients. and health care needs are addressed in the future. The Keogh review has affected the Sir Robert Peel As I am sure my hon. Friend agrees, the heart of the community hospital, which currently offers local services matter—this is certainly my reading of the situation for people living in and around Tamworth—including, from what he has said—is that there is a need for good for example, a 24/7 minor injuries unit, in-patient, X-ray communication from the foundation trust. That means and ultrasound department, and out-patient service. proper engagement by the trust with local communities, There is one ward providing rehabilitation, care of older patients and the public and local commissioners in all people, general medical care and palliative care. Consultant decisions. It is understandable that people will respond and nurse-led clinics accommodate consultations, negatively to speculation in the media, and sometimes investigations, minor procedures, post-treatment follow-up by word of mouth, about any change or improvement and health promotion. to services unless there is proper communication. It That is not the full range of services that one would seems that in this case that communication has not been expect at larger NHS hospitals. However, having close- of the highest standard, and that has led to some of the to-home community-based facilities is an important concerns raised by my hon. Friend. I know that he has 863 Sir Robert Peel Hospital1 APRIL 2014 Sir Robert Peel Hospital 864 recently met the chair and chief executive of the trust, with local commissioners in deciding on the future and I encourage him to build on that contact. I am sure health care needs of the local area. Hospital reconfiguration that the local NHS would welcome the opportunity and good health care means listening to patients and further to share its thinking with him. That would be the public and making sure that hospital services are very desirable for all hon. Members, including my hon. improved and delivered in a better way. Friend the Member for Burton (Andrew Griffiths). That is all the more important in this case because of I hope that the trust and local GP commissioners will the consequences of the Keogh review. I know that my continue to work together to explain clearly what they hon. Friend will go back from this debate and further are doing and why. Elected representatives also play a engage with the local trust. As I said, I am very happy strong leadership role in helping to work with trusts. It to meet him and my hon. Friend the Member for is in the interests of trusts to work with local MPs to Burton to ensure that we can help to achieve better ensure that there is a proper understanding of what engagement with local health care commissioners and they are trying to achieve in the way that they deliver the trust. health care to the local community. I am glad to have had the opportunity to place on I was pleased to hear that my hon. Friend has received record this Government’s support for the local NHS in reassurances from the trust about a strong future for Sir taking forward the difficult challenge of responding to Robert Peel hospital; that is good news. However, there the Keogh review. We would also like to put on record is clearly a need for the trust to focus on improving its our gratitude to the local front-line staff who work very communications in future to ensure that the people of hard at the Burton trust. I am sure that as a result of Tamworth and surrounding areas fully understand that their work and this debate, we will be in a much better delivering high-quality health care is about listening to position to make sure that the trust engages more fully the public. The public must feel that their views are with the public in Tamworth and surrounding areas being listened to and properly responded to when health when it comes to making decisions about future health care services are designed. To be absolutely clear, as my care services. hon. Friend said, this is about making sure that patients Question put and agreed to. and public in Tamworth do not feel that decisions are being done to them but that they are making decisions 8.49 pm on their own behalf and are fully engaged in the process House adjourned.

177WH 1 APRIL 2014 North Wales Economy 178WH

Mr Hanson: I would rather see them as giant economic Westminster Hall growth drivers. Only last week, we had a great announcement for Hull, with Siemens bringing manufacturing to the United Kingdom. In north Wales, Tuesday 1 April 2014 we have a strong renewable energy offer and lots of expertise. We have wind farms and the potential for more wind farms offshore, and a good opportunity to [MR PHILIP HOLLOBONE in the Chair] build on our economic success in that area. We also have strong manufacturing in the paper sector, with North Wales Economy Kimberly-Clark and SCA in my constituency. We still Motion made, and Question proposed, That the sitting have, despite many years of contraction, a strong steel- be now adjourned.—(Stephen Crabb.) making industry with Tata Steel in the constituency of my hon. Friend the Member for Alyn and Deeside 9.30 am (Mark Tami). Mr Philip Hollobone (in the Chair): I suspect that for Mark Tami (Alyn and Deeside) (Lab): Would my many Members it is a bit like “Groundhog Day”, as right hon. Friend join me in welcoming the fact that everyone here was in the Chamber yesterday discussing Tata has taken on a number of apprentices this year? It the Wales Bill. is seeking to invest for the future, which is good news for the plant. Mr David Hanson (Delyn) (Lab): Good morning, Mr Hollobone, and welcome to the Chair. It is a great Mr Hanson: It is good news, and I welcome the honour for you to be here to share our Welsh discussions. investment in apprenticeships. Other companies, such I am pleased both to have had the luck to secure this as Airbus, do the same in our area. We also have a debate, and that we have a strong showing from Members strong automotive industry, and this week Toyota made representing north Wales constituencies. We also have a strong case for engagement with Europe to ensure my hon. Friend the Member for Caerphilly (Wayne that we can export models from the United Kingdom to David) and my hon. Friend the Member for Llanelli Europe. (Nia Griffith), who is on the Front Bench. North Wales has the strongest manufacturing base in This debate offers us an important opportunity to the UK, and I shall focus on Airbus, which employs discuss the north Wales economy, for my colleagues and between 1,500 and 2,000 people in my constituency, me to promote what is good and strong about north with more employees coming from across north Wales. Wales to the rest of the United Kingdom, and for us to It is a vital manufacturing industry for UK economic look at some of the key issues that can help our economy growth. A potential 30,000 new aircraft will be built grow even faster and stronger and improve the living between now and 2032, representing a staggering standards of our north Wales constituents. It is also an $4.4 trillion-worth of business. Airbus has the opportunity, opportunity for us to press the UK Government to be with active Government support, to secure a key part an active Government who are engaged in promoting of that market. That is important, not just for the the economy and are not standing back. They should 7,000 people who work at Airbus, but also for many work closely with our colleagues in the Welsh Assembly others, including those who are part of the UK supply to achieve economic growth and be active as a part of a chain. Airbus has spent £180 million on that supply wider Europe. In the run-up to the European elections, chain in north Wales. The strong site at Broughton was we need to emphasise strongly how important Europe is developed with active support from the Labour Welsh to the north Wales economy. I will emphasise our Assembly and the previous Labour UK Government, economy’s cross-border nature. The Deeside hub is a and with the new wing development we have the potential key economic driver for north Wales and for north-west to grow the site further. England, the Wirral, Liverpool and Cheshire. Many of We also have strong sectors in other areas. Tourism is my constituents work in England and many people in a key activity for north Wales. We have a great tourist England work in north Wales, and that cross-border offer, which we can grow still further. Millions of people working is extremely important to our economy. are within a two-hour drive or train journey of our The economy of north Wales was worth a staggering tourism economy. We have a strong agricultural sector £10.6 billion last year, which represents £15,500 per with sheep and cattle farming, as well as milk production. person. That is 72% of the UK average, but that is Food production and distribution are growing in because constituencies such as that of the hon. Member importance. For example, we have food festivals in for Aberconwy (Guto Bebb) have a high retirement Mold in my constituency. That industry has a £3 billion population that drags down the figure. Our economy is value to Wales as a whole, according to a briefing I still growing, leading the charge for the UK economy as obtained yesterday from NFU Cymru. We have strong a whole. In north Wales, we have a number of economic local and national Government, with many people putting success stories in renewable energy, such as West Coast their wage packets, through employment in the health Energy in my constituency, Mostyn docks and the wind service and the county council, into the economy. We farms off the north Wales coast, such as Gwynt y Môr. have a particularly vibrant small business sector, which is extremely important in growing our economy. Many Chris Ruane (Vale of Clwyd) (Lab): What does my wage packets come into north Wales via the car right hon. Friend think of the Prime Minister’s comments manufacturers, such as Vauxhall at Ellesmere port, when he visited Llandudno in 2006? He described the the banking sector in Cheshire and the Deeside north turbines off the north Wales coast that I switched on as Wales hub, which is one of the strongest areas in the “giant bird blenders”. United Kingdom. 179WH North Wales Economy1 APRIL 2014 North Wales Economy 180WH

[Mr Hanson] coalition Government always running down Wales, the Welsh economy, the Welsh health service and Welsh The lesson that we must learn is that we need active education, using that as a political tool for their election Government engaged in all those issues, particularly the strategy? Deeside enterprise zone in the constituency of my hon. Friend the Member for Alyn and Deeside, which has Mr Hanson: It does not help. I hope that the Minister the active support of the Welsh Assembly and has will not only focus on the positives but listen to the invested through a capital programme in schools and Members here today who represent north Wales. Every colleges in our constituencies. In my own county, Labour Member from north Wales is present, along £64.2 million of that programme is going into four with the right hon. Member for Dwyfor Meirionnydd facilities in my county of Flintshire, one of which is the (Mr Llwyd) and the hon. Member for Aberconwy—the community learning campus at Holywell high school. hon. Member for Arfon (Hywel Williams) is not present—so The theme I am developing is active Government. That we have a strong cross-party group that is trying to back investment is finding its way into construction and north Wales. supply in the private sector, which is building and I want to discuss four or five areas where the Government developing those facilities. can help to grow the economy. We have discussed North Wales continues to benefit from EU funds. It is transport infrastructure with the Minister before, but important, in the run-up to the European elections, that real opportunities exist for us to improve connectivity we do not allow people to take the stance that the EU is between north-west England and north Wales and between bad for Wales, because more than 8,000 new businesses north Wales and the economic driver that is London. I have been created, and £665 million of contracts have want to put on the record my support for High Speed 2 been won. Some 13,000 businesses are supported in and for Sir David Higgins’s decision to draw the Wales, and north Wales has a considerable number of Government’s attention to fast development at Crewe. I those businesses. also support attempts by the Government and the Assembly We face some key challenges, however. In Flintshire, to develop electrification between Crewe and the north wages have fallen in real terms by £3,000 per family on Wales coast. I do so not for the sake of speed—an extra average since the economic crisis in 2007. A TUC study 10 or 15 minutes off journey times would be nice—but has shown that north Wales has suffered the biggest for the sake of capacity, which is crucial to our economy. wage cut in Wales, with an average drop of £57 a week. HS2 will bring vital extra capacity to the area for The latest figures show that the number of unemployed tourists, for freight and for businesses. people in my constituency has increased in the past year and that the number of unemployed young people is Albert Owen (Ynys Môn) (Lab): My right hon. Friend still rising. In my county, 1,567 people are each losing highlights the importance of the European Union and £880 because of the changes to the Government’s spare of transport infrastructure, but the two are combined. room subsidy—the so-called bedroom tax. North Wales lies on the trans-European network as a The cost of energy bills is also hitting the north Wales link between Dublin and London, so there is a strong economy hard, with the cost of energy rising by some business case for Ireland, Britain and the rest of Europe £300 over the past three years, meaning that money is to work together to ensure that north Wales gets the taken out of the economy instead of being spent on best connectivity. creating jobs and services for the future. Although we do have strong sectors, such is the lack of recovery in Mr Hanson: That is an extremely valid point. The the area that only yesterday Creative Foods, which is link from Holyhead in my hon. Friend’s constituency operated by Brakes, announced that it would consult on along the north Wales coast and down through my the loss of some 150 jobs and the closure of its food constituency into north-west England, and even the manufacturing plant in Flint. The consultation will end links across to Humberside, down to London and to in late May. Will the Minister contact the Welsh Assembly mainland Europe, are extremely valuable. I know that and the company to see whether the factory can remain the Minister supports that, but I think that he wants to viable or whether an alternative buyer can be found? be sure that he has the support of Opposition Members Brakes has operated in Flint for the 20 years in which I who represent north Wales to go forward with HS2 and have been a Member of Parliament, and it is a vibrant to try to make those links in a positive way. factory. Aaron Shotton, leader of Flintshire county council, has arranged for the council’s enterprise department This is not only about electrification and links to HS2 to meet Brakes to examine the situation. and the south, but about the links between north Wales and Merseyside and Manchester. My hon. Friend the In addition, this week I received a notification from Member for Halton (Derek Twigg) and I are meeting Aviva as part of the Budget submissions. The letter the Secretary of State for Transport regarding the Halton states: curve, which is a link to Merseyside and Liverpool “Wales had one of the lowest levels of confidence in general airport that will provide access for business. A direct economic conditions over 2013”. link to Manchester airport should also be considered. Although our manufacturing, tourism, renewables, Two great airports lie within 40 miles of my part of businesses and agriculture are strong, both the Welsh Wales and while Assembly investment at Cardiff is fine, Assembly and the UK Government should use business it does not serve the needs of the north. I hope that the policy to develop our offer and improve and grow our Minister will be able to liaise with others on that. economy still further. Transport and rail infrastructure are key, but I also Chris Ruane: I thank my right hon. Friend for giving want to stress the importance of Europe. My part of way a second time. Does he agree that the lack of north Wales does not benefit from European structural business confidence may be due to the Conservative funds, but much of north Wales does. My hon. Friend 181WH North Wales Economy1 APRIL 2014 North Wales Economy 182WH the Member for Vale of Clwyd (Chris Ruane) played an Holywell, Flint and Mold in my constituency. The active role over many years in developing that funding money will not be lost to north-east Wales but reinvested with two former Secretaries of State for Wales, my right in local small businesses and shops, and the community. hon. Friends the Members for Torfaen (Paul Murphy) I should welcome a commitment to a living wage; I and for Neath (Mr Hain). know that my hon. Friends would give that commitment. There is also a need for apprenticeships and training. Mark Tami: Even though we do not get that level of Airbus in north Wales is key to that issue. Tomorrow funding, we gain through what Europe gives us, which other hon. Members and I will meet Airbus apprentices allows big companies such as Airbus and smaller ones in the House of Commons. Capital-led investment by to invest, because they know that the market is important. an active Government in colleges, schools and infrastructure will generate business in the economy. That is why I Mr Hanson: My hon. Friend predicts my thoughts, particularly welcome the Labour commitment to invest because I was going to say that although my constituency in new homes and try to build 200,000 of them by 2020. does not depend on European objective 1 funding, the I hope that a future Labour Government will keep to fact that many businesses in Flintshire such as Toyota that pledge and invest in public sector homes, and and Airbus, and Vauxhall, which is nearby, are able to consequentially enable the Welsh Assembly Government sell goods to the European market without tariffs is to do so too. That will kick-start the construction vital to the area’s economic growth. I want the Minister industry and help people who are not now on the to commit to supporting a strong European Union. housing ladder. Labour’s commitment to cut business rates for small Ian Lucas (Wrexham) (Lab): Does my right hon. firms, for the first two years of a Labour Government if Friend agree that uncertainty is the enemy of investment? we are elected in May 2015, is also welcome. That would Even now, the Conservative party’s commitment, for also kick-start the local economy. The Labour party internal party political reasons, to a referendum on EU leader, my right hon. Friend the Member for Doncaster membership in 2017 is negatively impacting on investment North (Edward Miliband), has taken key action on in our communities. energy prices, which are vital to the cost base of many industries, particularly paper, steel and renewables. The Mr Hanson: I absolutely agree with my hon. Friend. ability to reduce and freeze energy bills will be a great We may plan for five-year electoral cycles, but businesses help to the economy of north Wales. plan investment over longer periods of time. Important I am pleased to have started the debate. I have tried to business decisions on increasing investment will depend talk about some of the many positive aspects of our on whether companies see the UK, and north Wales in economy, but we must never be complacent. There are particular, as part of a vibrant wider Europe. I hope challenges, even with respect to big companies such as that the Minister can comment on that. Airbus. There is a world out there trying to steal our I have mentioned transport and Europe, and I want markets and take our customers. Other parts of the to touch on the cross-border nature of investment. I world want to grow their economies, and we must be sadly could not participate in the Wales Bill’s Second ever vigilant. There are things that the Government can Reading debate yesterday, but I hope that in taking do—I hope that a future Labour Government will do forward the Bill’s proposals, the Minister is cognisant of them—to strengthen transport links, improve infrastructure the fact that the economy of my part of north-east investment, provide a living wage, and help to secure the Wales is linked directly to that of north-west England. continual growth of an economy that is strong and Development agencies, infrastructure stakeholders, diverse in several key sectors. That economy is of central businesses and local councils on the English side of the importance not just to north Wales and the north-west, border should be consulted on the Bill’s measures just but to the whole UK. as much as those on the Welsh side. The Welsh Assembly and the UK Government should work in tandem to Several hon. Members rose— develop both sides of the border. Some 400 of my constituents work for Vauxhall at Ellesmere Port, and it Mr Philip Hollobone (in the Chair): Order. I do not is sometimes quicker to get there than it is to get to want to call the Front-Bench spokesmen later than places on the Welsh side of the border. We must accept 10.40 am. Six hon. Members want to catch my eye and I and understand how integrated the United Kingdom is, do not want to impose a time limit, because I know you and its cross-border issues. are a well-behaved lot with huge respect for one another. The active issue for the Government relates to If you each speak for no more than seven minutes there construction. My hon. Friend the Member for Wrexham will be time for the odd intervention and everyone will (Ian Lucas) will talk about investment in the prison get in. shortly, but there are a couple of other key issues that we should examine. We need a regional plan for north 9.54 am Wales and north-west England, with connectivity across the board; but we also need to think about three other Guto Bebb (Aberconwy) (Con): It is a pleasure issues that are particularly important. To raise the level to serve under your chairmanship this morning, of investment and economic activity in north Wales, we Mr Hollobone. I shall try to keep my remarks to seven should seriously consider working towards a living wage. minutes. Local authorities should be involved in that, and we It is a pleasure to follow the right hon. Member for need an active Government to promote it. Money spent Delyn (Mr Hanson). I agreed with many of the points locally by people who earn a living wage will help to he made in his positive speech. As to transport, I fully regenerate high street small businesses in places such as accept that we need to push for upgrades to the north 183WH North Wales Economy1 APRIL 2014 North Wales Economy 184WH

[Guto Bebb] The successes of north-east Wales are not for north-east Wales alone. Constituents of mine work in the Airbus Wales main line. I would like electrification of the line; factories, and people travel from my constituency to slight upgrading of train speed is certainly needed, Deeside in 30 or 35 minutes on the A55, if there has not because that will result in greater capacity. I use the been a crash or an overturned caravan. The economies A55 regularly, as do my constituents, to get to work. We of north-east and north-west Wales are linked, and should recognise that it is on a Euroroute, and apparently things work both ways because a significant number of it is the only Euroroute that still has a roundabout on it. people from north-east Wales are more than happy to There are two, and they are both in my constituency, at spend their weekends in my constituency, and further Llanfairfechan and Penmaenmawr, so in due course I west in that of the right hon. Member for Dwyfor would welcome any upgrades to the A55, especially in Meirionnydd (Mr Llwyd). my constituency. I think things are moving in a positive direction. My The big picture is that north Wales can expect constituency has the highest dependency on small businesses exciting times. There has been concern about economic of any constituency in north Wales. If it were not for the figures, in relation to employment, but in Aberconwy small business community, the economic situation there unemployment figures have fallen by 13%. Most would be dire indeed. We are experiencing confidence, importantly, the youth unemployment figures have fallen. investment, and the willingness of people to invest in I am sure that every right hon. and hon. Member in the their businesses, whether those businesses are new, or Chamber would welcome 18 to 24-year-olds finding are being refurbished. There are recent successes that jobs. It is positive for those individuals, and for the we should all welcome. The one I am most pleased economy of north Wales. about is a small coffee shop in Llandudno Junction. In The opportunities presented by Wylfa Newydd are terms of economic change, it is not a big issue—four also part of the big picture. We cannot overestimate the new employees in a small coffee shop in Llandudno potential of a new nuclear power station to transform Junction—but that business was funded through crowd the economy of north-west Wales. I am delighted about funding. It is the first business that I have seen in my the partnership between Gwynedd council, Isle of Anglesey constituency that sought crowd funding because of the county council, and Conwy county borough council, to reluctance of banks to lend, which continues to be a big work to ensure that young people in north-west Wales problem. That resulted in a brand new coffee shop will have the relevant skills for that exciting industry. employing people in the Junction. That is the type of Those who have the skills relevant to Wylfa Newydd innovation from young people that will be key to the will also have the skills relevant to the wind farm success of the north Wales economy. developments that are happening, and to other forms of energy generation. Ian Lucas: Will the hon. Gentleman give way?

Albert Owen: The hon. Gentleman is right; will he Guto Bebb: I will take one final intervention, because join me in congratulating the Welsh Government on I am aware of the time. investing £2.5 million only last week in skills training in the energy sector? Ian Lucas: My interest, which I share with the hon. Gentleman, is in finance for business. Would he support a regional bank for north Wales that was much more Guto Bebb: I will. I will not allow any party politics to attuned to the regional economy, able to understand stand in the way of the fact that that was a welcome our local business community and therefore able to decision. I also welcome the commitment by further make the right decisions on investment? education colleges, local authorities and the business sector to making that happen. It will provide young people with an opportunity to plan for a career in north Guto Bebb: There is certainly an argument for that, Wales. I also welcome yesterday’s decision by the green but let us be fair: our big problem in Wales is the fact investment bank to invest £220 million in the Gwynt y that Finance Wales has been such a disastrous failure. Mor facility. Every councillor in Conwy, including every Had it stepped into the breach as a lender of last resort Labour councillor, voted against that development, but supporting businesses, perhaps we would not need a the key thing is that the decision was made, and we need regional bank. Businesses in my constituency, such as as much local value to be drawn from the development those in the Church Walks enterprise hub, which has as possible. 40 employees in the high-technology industries, were being charged 7% above base by Finance Wales. That is the type of lending that HSBC and other high street Chris Ruane: Will the hon. Gentleman pay tribute to banks have been guilty of charging. When we see a the more positive attitude of Denbighshire county publicly supported bank doing that, I have real concerns. councillors, including Conservatives, in Prestatyn and We are certainly seeing real signs of investment in my Rhyl, who voted for the wind farms of North Hoyle? constituency.A vital investment has been the refurbishment of the Eagles hotel in Llanrwst. No small town can do Guto Bebb: To be fair, it is important that we should without a key hotel, and the closure of the Eagles hotel reflect on the concerns of the tourism sector in Aberconwy, caused concern about the future of Llanrwst. I welcome and Conwy in general, in relation to the wind farm its reopening with significant new investment. Furthermore, development. The concern was reflected strongly by on Friday, I was in Betwys-y-Coed, reopening the Pont local representatives of all political parties in Conwy. y Pair inn—seven new employees, a significant £150,000 Denbighshire councillors saw things differently, but the investment and, from what I saw, a guaranteed success. key thing now is to build on those successes. Even better, that investment means that we are selling 185WH North Wales Economy1 APRIL 2014 North Wales Economy 186WH the local brew, the Conwy Brewery beer; that shows part of the wider north Wales economy. There are how tourism can interlink with the food and agricultural clearly concerns if unemployment figures in some parts community. That is the other issue that I want to of north Wales are increasing. That is not the case in touch on. Aberconwy, but we need a successful economy throughout We sometimes forget when talking about the economy north Wales. We benefit from investment in the north-east of north Wales how important agriculture and the food Wales, just as I am sure that it will benefit from investment sector are. In my constituency, we see the links, because in the north-west. The prognosis for the north Wales there is significant investment in the Bodnant food economy is positive, as long as we have a Government centre, which is supported by European regional funding; who understand that their responsibility is to support indeed, it is one of the 0.5% of European-funded projects businesses where they can and, most of the time, simply led by the private sector. It is a success; European get out of the way. regional funding might have even greater success if more such projects were led by the private sector, rather 10.5 am than by the dead hand of bureaucracy. The food sector in my constituency is going from strength to strength. Mr Elfyn Llwyd (Dwyfor Meirionnydd) (PC): It is a The Bodnant food centre is a fantastic success story, but great pleasure to take part in the debate. I congratulate it is building on top of the success of companies such as the right hon. Member for Delyn (Mr Hanson). As I Blas ar Fwyd and Siwgr a Sbeis. Those companies are recall, he and I were elected back in 1992 on the very delivering for and serving the tourism sector—cafés, same day. restaurants and hotels—and it is as if all the sectors of In November last year, I wrote an article in The the economy in my constituency are coming together to Independent, sparked by the disturbing news about wage give tourists and visitors a distinctly Welsh feel when levels in Dwyfor Meirionnydd: 40% of people in full-time they come to north Wales. work were earning less than the living wage, which is There is real, large investment in Llandudno, the considered unacceptable where there is no help from tax queen of Welsh resorts, which gave a warm welcome to credits and so on. In the article, I noted that rural the Welsh Labour party over the weekend—we were poverty is just as grinding as urban poverty. What is delighted to see them, obviously. For a long time, it has most disappointing is that the area that I have the had two large derelict hotels, which have been a stain on honour to represent was once an industrial area central the town: the Clarence on Gloddaeth street and the to the cementing of Wales’s position as the birthplace of St Tudno hotel, which can link the high street to Parc the industrial revolution. The question is about not the Llandudno. The good news is that both are being quantity of jobs, but their quality, and our problem is refurbished in multi-million-pound investments, and the low-wage economy that we all struggle with in north there will be hotels, shops, other retail outlets and cafés Wales. That is not a political point; it is something that in both locations, one at the top end of the high street we all need to aspire to get rid of. There are disparities and the other at the bottom end. They are significant, within the UK, which is probably the state with the multi-million-pound votes of confidence in the economy greatest disparities in the European sector. of Llandudno. Clearly, we are turning the corner. There There is hope and no lack of ambition, however, as will be employment growth and, more importantly, the the right hon. Gentleman for Delyn said. Last October, slight decay that we saw on both sides of the town will I hosted a parliamentary day for Meirionnydd, alongside be dealt with positively. I pay tribute to Mostyn Estates, the Farmers Union of Wales, showcasing the constituency’s to the investors and to the local authority for ensuring small businesses, which are thriving in a time of austerity. that we are dealing with those problems quickly. Cutting business rates, lending to businesses, and The Government are also doing things. They are apprenticeships for young people lie at the heart of my giving a huge vote of confidence to small businesses. In party’s plan for the north Wales economic recovery. my constituency, a small partnership business, such as a Indeed, that will benefit the whole of the Welsh economy, husband and wife running a guest house, will be able to as the hon. Member for Aberconwy (Guto Bebb) said. post a £20,000 profit without paying tax. That money We have long called for a living wage to ease the squeeze will go back into the business, because running a guest on people’s pockets. It would make a substantial difference house is like running the Forth bridge—people must to living standards in constituencies such as mine, and keep investing to keep up standards. That tax break of across the whole of north Wales. Fair pay is essential. the personal allowance increase is a tax break for businesses, We need to put an end to exploitative, zero-hours contracts. and it makes a big difference in my constituency. The I will not enter the political arena on this issue, because £2,000 rebate on national insurance is another vote of I am not sure where my friends in the Labour party confidence in small businesses that want to employ stand on it—there is one view in Cardiff and one staff; they will have a tax rebate if they do. Finally, the here—but in any event, such contracts should have no Welsh Government have seen sense on the small business place in a modern economy. rate subsidy of £1,000; that was announced by the Transport links, as the right hon. Member for Delyn Chancellor in his autumn statement. It took the Welsh said, are essential for any development of the north Government four months, but I will not carp about Wales economy. We still await notification from the UK that; I would rather see a correct decision made late in Government of the electrification of the north Wales the day than a wrong decision. I welcome the fact that main line. The Secretary of State has indicated that he is the Welsh Government are following in the footsteps of in favour of it, but has had remarkably little success so the Chancellor by ensuring rates relief for small businesses far in persuading his Cabinet colleagues. Wales still in my constituency. does not have a single mile of electrified track; it is I will curtail my remarks, having given, I hope, a comparable with Albania, in European terms. The trans- positive view of how things are developing in my European network, as the hon. Member for Ynys Môn constituency. Of course, Aberconwy is not isolated; it is (Albert Owen) said, is another area where the UK 187WH North Wales Economy1 APRIL 2014 North Wales Economy 188WH

[Mr Elfyn Llwyd] should focus on the productive economy, rather than using funding for lending to asset-lend in the form of Government, as well as the Welsh Government, have to mortgages and pumping up another house price bubble. get moving. The rail line to Holyhead has been left off the European top-tier corridor projects, thanks, Mark Tami: The banks are still telling us that they are unfortunately, to the UK Government illogically guiding lending far more money to SMEs. However, as hon. the route to Liverpool for the ferry to Dublin, rather Members know, SMEs that come to see us tell a very than along to Holyhead, which is the most obvious different story—in particular, about their overdraft limits route. That decision needs to be looked at again. being cut and the problems associated with that. Away from transport links, we in Plaid Cymru have been focusing on the need to develop the small and Mr Llwyd: The hon. Gentleman is absolutely right. medium-sized enterprises sector in Wales. SMEs are the Not only that, but the four major clearing banks have backbone of the Welsh economy. It is often said, and I an understanding that they will not support tourism believe it is true, that about 90% of employment in enterprises unless they are heavily persuaded. Think of Wales is in the SME sector. Gone are the days of the effect that has on the Welsh economy. inviting large international companies to bring in a We need a Welsh public development bank, which massive factory and showering them with cash, only to could be geographically tied to Wales, similar to the see them leave a few years later. We must build from Sparkassen and Landesbanken in Germany. Plaid Cymru within. Plaid Cymru has put forward a range of proposals has been calling for that for years. I am pleased that the on business rates and financial support for SMEs. Minister, Edwina Hart, has moved on that issue and has Discussions are ongoing in the National Assembly on called for another review. I hope the Welsh Government that issue, and Plaid Cymru and others are playing in Cardiff will give priority to it, because it is vital to our part. enable the SME sector to trade out of the recession. It The right hon. Member for Delyn rightly referred to could assist us all, and give a massive boost to the Welsh tourism, which is a vital part of north Wales’s economy. economy. It is the main sector that we need to concentrate We have many things to brag about, such as the iconic on. Snowdon and the Snowdon railway, our lakes and the Finally, although I have a high regard for the right unique charm of Portmeirion. Last week, Antur Stiniog hon. Member for Delyn, I disagree with him on having in Blaenau Ffestiniog opened a mountain bike circuit, ever closer links with the Chester-Liverpool region— and the following day there was a UK championship although my legal chambers are in Chester, so who am I with 2,000 competitors. Coed-y-Brenin is another of to say that? The problem with the Wrexham-Chester- the premier mountain bike venues in Wales and beyond. Liverpool city region is that Welsh interests may be drowned out and become subservient to those of the Guto Bebb: The right hon. Gentleman is making a north-west. That is the likelihood, if the numbers living significant point about the adventure tourism sector in on both sides of the border are compared. The super-prison north Wales. Will he join me in congratulating my in Wrexham—we will hear from the hon. Member for constituent, Mr Sean Taylor, who has opened the largest Wrexham shortly—demonstrates that point. It is a priority zip wire in Europe in Bethesda? for an England-centred justice system: a gigantic Tory-style, “lock ’em up and throw away the key” type-prison to Mr Llwyd: Yes. When I represented the valley, I used house offenders from all over the north-west of England. to help him as well. I got him started, so I can take part There will be 500 prisoners from Wales, and 1,500 of the credit. I am pleased to join the hon. Gentleman unfortunate people imported in. Strategically, it answers in congratulating his constituent. It is a great pleasure the needs of the north-west, not those of north Wales. I to see a business such as his succeed. We have fishing, agree with much of what the right hon. Member for climbing, sailing, hiking—the whole lot. Of course we Delyn said about transport links, the living wage and need to increase footfall, but the main thing we need to many other things. However, when I hear talk about address is the need to increase the visitor spend. We that sort of axis, I fear the likelihood is that we will need to up our game, but it is not beyond our knowledge come off second best. and ken to do that. 10.15 am Other measures that can improve the north Wales economy include a private sector-led industrial development Albert Owen (Ynys Môn) (Lab): It is a pleasure to authority to leverage investment into the Welsh economy. follow the hon. Member for Aberconwy (Guto Bebb) That is not dissimilar from the suggestion that the hon. and the right hon. Member for Dwyfor Meirionnydd Member for Wrexham (Ian Lucas) made. I still believe (Mr Llwyd). On a lighter note, both mentioned the it was a mistake to do away with the Welsh Development zip-wire project. Would it not be a great opportunity for Agency. Yes, it was a quango, but it did a good job and both to have a go on it, as Boris Johnson did? it was a brand that was known worldwide. But it went, and with it went the Development Board for Rural Mr Llwyd: It would turn into an adult movie, I am Wales, and nothing has been put in its place. The small afraid. business sector in rural Wales has lost that important arm of assistance, which was always there and was Albert Owen: I could not possibly comment. effective. This is an important issue. I pay tribute to my right We believe that we need a public development bank hon. Friend the Member for Delyn (Mr Hanson), who to lend to SMEs and help develop local industries. Five has been a great advocate for his constituency, for north years on from the crisis, SMEs are still being squeezed Wales, and, when he was a Wales Office Minister, for and the banks are still not giving them fair play. We the whole of Wales. I give credit to him and his team 189WH North Wales Economy1 APRIL 2014 North Wales Economy 190WH for the dualling of the A55 across Anglesey, which was benefit, other than consequentially. Ports are a reserved unfinished business. He and his team did much good for matter and the United Kingdom should look at all its the north-west of Wales and, in particular, my constituency. ports equally. We are losing out because there is lack of I welcome the fall in unemployment in Wales. For the investment in Welsh ports. Hull is developing and that is first time in my political career as an activist and a good for the United Kingdom, but I want Holyhead in Member of Parliament, average unemployment is lower the west to develop too. That would be good for Wales, in Wales than in the rest of the United Kingdom. When for north Wales and for the United Kingdom. I first became a political activist in the ’80s, my constituency Previous speakers have rightly talked about the balance was top of the wrong leagues. It had double the average between industrial development and food, farming and unemployment of the United Kingdom, but, that has tourism. That balance is extremely important, because been transformed. According to the House of Commons those sectors are major contributors to the north Wales Library, between 1997 and 2007, my constituency created economy. I recently opened a £7 million upgrade at the an extra 7,000 jobs. My area has gone from the top of Glanbia cheese factory at Llangefni in my constituency. the unemployment league to below the average figure. Hon. Members may eat Domino pizzas, and the toppings That is a good news story, but it did not happen by are likely to have been produced in my constituency. accident. There was a lot of direct Government intervention, High-tech, well-paid jobs use locally sourced resources. and I pay tribute to the Welsh Government for their The cheese factory uses locally sourced milk, it is a intervention in job creation. good employer and it helps to produce a UK and The hon. Member for Aberconwy is absolutely right international brand. Those jobs are worth while. that it is essential for our economy and our future that Last Friday, I visited Llandudno to attend the Welsh we get young people into training and work. That has Labour party’s successful conference. More importantly, been happening in Wales at a greater rate because of the my mother-in-law lives there. She has worked in the jobs growth fund in which the Welsh Government are hotel and leisure industry throughout her working life. directly involved. It is due to that fund that we are She has contributed as a self-trader and business women seeing historically lower average unemployment in Wales for many years. It is always good to go back to Llandudno in than the rest of the United Kingdom. to see her. I wanted to put that on the record because We need such schemes and direct intervention. As the mother’s day has passed and I should probably have right hon. Member for Dwyfor Meirionnydd said, we been there on Sunday, but I was there over the weekend. need to change the fact that there is a low-wage economy I held a round-table discussion with hoteliers at Dylan’s in many areas, but I am confident we can do that. There restaurant, which is a fantastic new facility on Anglesey are new schemes on the horizon—excuse the pun—such employing some 40 people. It brought together farmers, as Horizon, which in 2009 was established to build a hoteliers, restaurateurs and people involved in tourism new nuclear power station in my constituency. It was an alongside my hon. Friend the Member for Ogmore investment of £6 billion to £8 billion—one of the biggest (Huw Irranca-Davies), the shadow Minister for single investments in Wales, and as big an investment in Environment, Food and Rural Affairs. We understand north-west Wales as the Olympics were in London. It the importance to the region of the rural economy and will have huge benefits not only for my constituency but jobs. Talking specifically about the tourism industry, I for the whole of north-west Wales. It raises the bar for believe that there is an opportunity for the UK Government skills in the whole of north Wales, making it an attractive to consider reducing VAT in the hospitality and tourism place for businesses to invest and for people with high sector. That call comes not just from politicians but skills to work. I welcome that investment. from the business sector. Someone contacted me about I also welcome the £2.5 million fund announced by the importance of doing so. They wanted to upgrade the Welsh Government for nuclear and energy skills and to invest in their business. training. We can become the centre of excellence for energy development in research and development, Chris Ruane: Will my hon. Friend give way? generation and other parts of the sector. It is hugely important for our energy security as a nation, and we want north Wales to be a big part of that. I welcome Albert Owen: I am happy to take an intervention if initiatives in offshore wind, nuclear and solar power. I my hon. Friend wants to make one, but other hon. also welcome the research and development that is Members want to speak, and some hon. Members have being done in colleges and universities across north spoken for a long time. We need to make the case for the Wales. Coleg Menai in my constituency is central to tourism sector in north-west Wales. that work. Decommissioning projects have gone ahead, The Governments in the Republic of Ireland and in with money set aside to train people for the future. As France, our near neighbours, have reduced VAT to one wave of energy regeneration closes down, investment stimulate the economy. A campaigning group has carried in skills as a result of money from decommissioning has out a study which shows that a cut in VAT in the first gone into jobs for the future. year would result in a loss to the Treasury, but would be I have previously raised the matter with the Minister cost-neutral in the second year, and result in profit because I feel strongly about it. My right hon. Friend thereafter. the Member for Delyn was right to highlight the importance of the Siemens investment in Hull. As I have said many The Parliamentary Under-Secretary of State for Wales times, Welsh ports are losing out. Other people and I (Stephen Crabb): Labour Members, particularly the lobbied the previous Chancellor of the Exchequer hon. Gentleman, continue to use the example of France, for money from the £60 million fund to release that where 1 million jobs have been destroyed. Here in the blockage and to get money into the ports, but the UK, more than 1 million jobs have been created, so he present Government decided that Wales would not should be wary of harking back to the French example. 191WH North Wales Economy1 APRIL 2014 North Wales Economy 192WH

Albert Owen: The Minister is being selective, because years are going in our local economy. We must realise the majority of European countries have cut VAT. We that the type of grant aid that was available in Wrexham, are out of sync with many of our competitors. The for example, in the 1980s and 1990s and which sometimes Republic of Ireland is a great example of a country that led to investment from outside the UK and to inward is coming out of recession because it is has provided a investment is no longer available. stimulus for small businesses. The Government should A strong theme in all parties is that we must grow the take that on board as we come out of recession. economy in north Wales from within and develop local My final comments are about borrowing. Yesterday, investment—I was interested in what the right hon. we had a long debate on the Wales Bill. It is important Member for Dwyfor Meirionnydd (Mr Llwyd) said to have borrowing powers, and not just for the M4 relief about banking—and mechanisms to support local road. We need relief roadworks in north Wales, particularly businesses. We have excellent local businesses. in my constituency around the Menai bridges, where Only last week, I visited Magellan Aerospace in there is a huge problem that delays traffic on both sides. Wrexham, which is an important part of the supply That affects not just local traffic but visitors. I want chain for Airbus: a positive picture was presented and Anglesey, north Wales and Wales to be a centre of apprentices are being taken on. I was delighted to meet attraction for high-quality jobs in rural and urban Mr Darryl Wright, a governor at a local school that areas. I want that centre to be a place where people want encourages apprenticeships in the aerospace industry. to work, live and invest. Do not take my word for the We will meet some of those apprentices later this week. fact that it is a beautiful place, Mr Hollobone—come I am delighted that in Wales we are doing better with and visit. Come and join the people who want to come apprentices than anywhere in Europe, including England, to north Wales. It is a unique corridor between England with the help of the excellent Minister, Ken Skates—he and the Republic of Ireland and a place to do business. formerly worked for my good and hon. Friend the I want Governments to work together at all levels as we, Member for Alyn and Deeside (Mark Tami)—whose the politicians in this debate, want to work together for commitment is showing through and creating an enormous the benefit of our constituents. number of apprenticeships. Several hon. Members rose— In our local economy, we must focus on the development not just of physical infrastructure but of colleges such Mr Philip Hollobone (in the Chair): There are 15 minutes as Coleg Cambria, to support apprenticeships, and left, and three hon. Members want to speak. Glyndwr university, to develop education within our region. In that way, we can support our local economy and make not just the physical infrastructure but the 10.25 am intellectual infrastructure world beating. The companies Ian Lucas (Wrexham) (Lab): It is a pleasure to that I am talking about—for example, Magellan, which follow the poetic rhetoric of my hon. Friend the Member is a Canadian company—do not need to be based in for Ynys Môn (Albert Owen) and it is a pleasure, our region and will go there only if it is a world-competitive Mr Hollobone, to serve under your chairmanship. I economy and we provide the infrastructure that enables congratulate my right hon. Friend the Member for us to compete. Delyn (Mr Hanson) on his speech. I will not repeat My right hon. Friend the Member for Delyn made many of the things he said because he gave an excellent points about the development of the road and rail exposition on north Wales and I accept his speech in its networks. We absolutely must argue the case for our entirety. region at Welsh Government, UK Government and Mr Hollobone, you should visit the Pontcysyllte and European levels. Unless we do so, we will lose the Chirk aqueducts in the constituency of my good friend— benefits of those majestic companies that we have in our area. The work being done by the Welsh Government Mr Philip Hollobone (in the Chair): Order. Several is very positive. One scheme we have not mentioned is references have been made to the question of whether I Jobs Growth Wales, which is very important. It has have been to north Wales. I have been there many times, been mentioned on many occasions in my constituency and on a Territorial Army exercise I swam across the by employers. I visited a business the week before last reservoir at Pontcysyllte and camped on the beach at called Fotofire Ltd—I visit businesses a lot in Wrexham Penmaenmawr. I know the area extremely well and I and liaise with them closely—and I was told that the recommend that tourists visit it. scheme had led to the employment of a number of individuals in the business. They had been assessed by Ian Lucas: We have an endorsement at the highest the employer, which had then made judgments that they level. I will say no more about tourism, except that were the right people for the business. That company north Wales is a beautiful part of the world and tourism works in media, in the web industry, and is a home-grown is an important part of its economy. business in Wrexham. It is tremendous to see that sort Although I promote north Wales as much as any of business developing. I am pleased that Jobs Growth hon. Member, I want to speak about job losses in Wales is making such a positive contribution. If the Wrexham. We have had a difficult six months. We lost Minister was to take something on board, he would more than 500 jobs at Sharp Manufacturing UK in look at that scheme and consider whether it could be February, only two months ago. We lost 140 jobs at applied across the rest of the UK. Kellogg’s in Wrexham, and just outside, in south Clwyd, I also want to say a word on finance. A key issue for more than 200 jobs were lost at First Milk. This is a us is financing the local economy. It is not only about positive part of the world and I will talk about the the past five years; it is now seven years since the great positives, but we must bear in mind the fact that substantial, economic crash. I attended a meeting last Friday morning well-paid and valued jobs that have been there for many of Wrexham business professionals where, again, the 193WH North Wales Economy1 APRIL 2014 North Wales Economy 194WH issue of access to finance was raised by businesses that that in parts of London there would be large anti- are still having problems with our uncompetitive banking supermarket campaigns whenever a new supermarket system. I have argued over a long period for the development was proposed. I am not suggesting that sort of approach, of a model based on the German Sparkassen method, but sometimes in north Wales, I think we go a little too with a banking economy linked to our local industrial far the other way. With First Milk, we saw the board of economy.Our economy provides 30% of the manufacturing Asda ditching an excellent supplier and causing those output of Wales. A lot of money and wages are being redundancies. I also think that a lesson can be learnt earned in our local economy, and I believe that the from that about the existing TUPE arrangements. There people of north Wales would like to invest in their local is a case to say that even if the plant had to go in the economy through models and through a local bank. final analysis, the jobs should not have. I leave those The Sparkassen method is resilient; it has worked in thoughts at that. Germany over many years. More positively, I want to discuss Kronospan. My I am delighted that the Labour party has committed right hon. Friend the Member for Delyn (Mr Hanson) itself to regional banking. If we are to have a competitive spoke fantastically at the beginning of the debate about market that provides finance for local business, I believe real economic success stories in north Wales. Kronospan that that type of investment needs to come through is one of those; it is in Chirk and opened in 1970. Its local banking, with individuals who know the local creation came after most of the coal mining tradition in economy. I wish that the Government would see that that area had finished. Kronospan is a wood panelling current banking methods are not working, that we need plant and is one of the top 10 manufacturing companies to create a more competitive banking system, and that in Wales. It is the largest manufacturer of wood panelling they would look at alternatives that have worked in products and laminate flooring in the world and the other places. That would be very welcome for businesses entire production of wood-based panel products is in my constituency and is something I would be keen to controlled from Kronospan’s site in my constituency. It promote. employs just under 600 people, 90% of whom live in a We have a positive picture in north Wales, with some 10-mile radius of the site itself. of the caveats that I have indicated. There is an issue Kronospan is massively important. It has a thriving relating to wages. I would say that this Government apprenticeship programme supported by the Welsh increased VAT—they did not decrease it—taking money Government, teaching young people real-life employment out of the pockets of my constituents and putting it skills. It works exceptionally well with the local community straight into the pockets of the Chancellor of the Exchequer, and works closely with Chirk town council, with which at a centralised level. That had a damaging effect on it has a liaison committee. Their joint work has led to Wrexham and, I am certain, on other communities in fewer lorries and more logs carried by train, among Wales. Increasing VAT is a really bad policy, because it their many other successes. takes money out of local economies, and I hope that However, it is not just a good story, and this is where I such a mistake will not be made again. want the Minister’s help. Kronospan and I are concerned by various incentives in the Government’s renewables Several hon. Members rose— obligations and the new Energy Act 2013 to purchase wood for energy generation. I assure him that this is not Mr Philip Hollobone (in the Chair): We have six and a an anti-biomass move, but we are concerned about half minutes for two speakers. First, I call Susan Elan some unintended consequences of the Act. We are Jones. asking not for special treatment but for a level playing field. We do not want to lose our Welsh Kronospan to 10.33 am another country. I ask the Minister whether he will meet Susan Elan Jones (Clwyd South) (Lab): Thank you, me and representatives from Kronospan to discuss the Mr Hollobone. I could probably speak on this subject matter, which is most important to the economy in my for about an hour—obviously my remarks will have to constituency and in north Wales. be rather shorter than that—especially as I have in my constituency the one world heritage site in north Wales, 10.37 am the Pontcysyllte aqueduct, but we will not boast about such things. Chris Ruane (Vale of Clwyd) (Lab): I start with a few I would like to concentrate briefly on two things that key facts that we may not hear from Conservative Front specifically relate to my constituency, but that have Benchers, because their election team are too busy close bearings to the north Wales economy. The first is running down Wales. They have declared a war on the tragic closure—the final shift was yesterday—of Wales in the run-up to the election. First Milk in Marchwiel. There were 231 job losses at Welsh unemployment is 6.7%—better than England. that plant. Many of the staff who spoke on the matter Inward investment last year went up 191%, compared were extremely gracious in view of the circumstances; with 10% in England. Jobs Growth Wales, which puts they thanked Wrexham county borough council, Careers young people into training and then employment, only Wales, the Department for Work and Pensions and has a 10% dropout rate. In England, the Work programme other bodies that tried to help them get jobs. has a 50% dropout rate. The Prime Minister was caught However, my contention is that the original redundancies with his waders down in the recent floods, because in at the plant should never have happened in the first Wales, we have been investing £81 per person in flood place. What we saw was a cursory lesson for those who defences as opposed to £47 per person in England. seem to welcome supermarkets as a universal good. I The Prime Minister said that my town of Rhyl know that the Minister and I, coincidentally, lived in the is neglected. Let me tell him what neglect means same London borough at one stage. He may remember in my town: it means Welsh Government investment of 195WH North Wales Economy1 APRIL 2014 North Wales Economy 196WH

[Chris Ruane] The hon. Member for Aberconwy also referred to the modern crowd funding for a local coffee shop and £28 million in housing; £10 million in a new harbour; stressed the importance of the food sector. £22 million in a college; £22 million in a hospital; The right hon. Member for Dwyfor Meirionnydd £12 million in putting people back to work through talked about small businesses, and I certainly enjoyed Rhyl city strategy; and £11 million in flood defences. meeting people from small businesses when they came Let me tell him about neglect: neglect is when his to this place. He also mentioned the issue of the low-wage Government are closing the tax office in Rhyl; the economy and asked what the Labour party policy was. Crown courts in Rhyl; the Crown post office in Rhyl; Our policy is clearly that we very much want to incentivise and the army recruitment centre in Rhyl. employers to move up to paying the living wage by I pay tribute to the work that the Welsh Government giving them a tax break to do so. While they were have done. They have invested £1.4 billion in education, getting that tax break, we would obviously be saving on helping the Welsh economy get back on its feet and the additional tax credits that would have to be paid if helping Welsh children to get a decent education. That people were paid less than the living wage. includes £159 million in the Minister’s county of The right hon. Gentleman mentioned zero-hours Pembrokeshire. I pay tribute to the work that Huw contracts. He knows full well that zero-hours contracts Lewis, as Education Minister, is doing in masterminding are zero-rights contracts. One of the key issues is that if that, and to the work of Jane Hutt, who has had a people do not have a proper contract, they have no positive engagement with Europe—£1.86 billion will be rights at all. We have said clearly that where there is drawn down over the next five years. I also pay tribute abuse of zero-hours contracts when people are working to Alun Davies, the floods Minister, who is helping so on a regular basis, they need to be issued with proper much to put £240 million of anti-flood investment into contracts rather than being kept in that awful situation the Welsh economy, protecting Welsh homes and Welsh of having insecurity not only from week to week but families. about whether they will even keep their job. He also mentioned the need to increase the spend on tourism—in 10.40 am other words, to try to attract in more money per person than we have in the past. Nia Griffith (Llanelli) (Lab): I congratulate my right hon. Friend the Member for Delyn (Mr Hanson) on My hon. Friend the Member for Ynys Môn talked securing the debate, which has been excellent, and on about the huge investment in the nuclear sector on his making a very good and full opening speech. I do not island and the importance of that to the north Wales wish to repeat all of that; nor do I wish to dwell too long economy, but also about the importance of wind and on the issue of transport infrastructure, as we had a solar investment. Again, he mentioned the importance debate about it last November, but it is crucial that we of skills for the energy sector. He also made a key point have joined-up thinking UK-wide whenever we talk about ports. I know that the Minister would not like to about transport infrastructure. We have to be certain appear partisan; he would not like to appear to be that north Wales is fully connected not just to Crewe looking for money just for his own constituency port. I but to the north-west of England more generally—to ask him to take up my hon. Friend’s point that we did the Liverpool and Manchester airports, and then across have money secured for ports that is now not coming to the trans-Pennine route to the north-east. It is also vital the Welsh ports. If the Minister could take the point up that we are part of joined-up thinking across Europe with the Treasury and see whether he can do something and that people can go right through to Holyhead and for investment in the ports in Wales, that would be a across to Ireland. Transport infrastructure remains welcome outcome of the debate. extremely important, and I hope that the Minister will My hon. Friend the Member for Clwyd South (Susan continue to stress both that and the need for investment Elan Jones) mentioned job losses. That point was and careful thought about how we can link the north emphasised strongly by my hon. Friend the Member for Wales economy to the rest of the economy of the UK. Wrexham—we have seen significant job losses in Wrexham. The hon. Member for Aberconwy (Guto Bebb) That brings me to the two major points that I want to mentioned the skills sector. The point was reiterated by make today. One is about the importance of giving a my hon. Friend the Member for Ynys Môn (Albert strong and clear message that we are fully committed to Owen), who spoke about the recent investment by the staying in the EU. I serve on the European Scrutiny Welsh Government in that sector, particularly with Committee, and believe you me, Mr Hollobone, there respect to the energy sector. The hon. Member for are members of that Committee who wish not only to Aberconwy also mentioned the reluctance of the banks renegotiate the Lisbon treaty and go back to the Maastricht to lend. That point was picked up by my hon. Friend treaty, but to renegotiate the 1972 accession treaty. the Member for Wrexham (Ian Lucas), who explained Those are the sorts of messages that people in Asia are the important way in which we could use a regional getting, which is extremely damaging. If we look at the banking system, which would take money from the Welsh economy, we see that 150,000 jobs in Wales local economy and put it back into the local economy. depend on our membership of the EU. It would make money available for local businesses to The uncertainty is worrying for existing firms that grow organically in their home towns, thereby securing want to invest. They are thinking, “Shall we invest that investment for many years to come. That point was further in the UK, or play safe and invest in the Netherlands, broadly echoed in the call by the right hon. Member for Germany or France—in mainland Europe, where we Dwyfor Meirionnydd (Mr Llwyd) for a return to something know we will be okay and will not suddenly find ourselves like the Welsh Development Agency, the demise of outside the EU?”The uncertainty also deters new investors, which he much regretted. Those were important points particularly from outside the EU, who want access to about growing the local economy. that market. They do not want to invest in a part of the 197WH North Wales Economy1 APRIL 2014 North Wales Economy 198WH

EU that might suddenly not be there any more. They do Member for Llanelli (Nia Griffith). I congratulate the not want to think that they might face tariffs of anything right hon. Member for Delyn (Mr Hanson) on securing from 5% to 200%. Nor do new investors want to be left this important debate, and for the positive, constructive out of the negotiations on the EU-US treaty. They do and intelligent way in which he set out his case. He not want to be in a country if the head of that country emphasised the positive aspects of what is going on in is not at the negotiating table and is not at the centre of Wales and the need to do more to secure the future of the negotiations on what will happen in the EU in the excellent developments and facilities that he talked future. about so eloquently. It is concerning that we hear all these noises and that This morning, more people than ever before in north there is talk of uncertainty right up until 2017, with the Wales went out to work. When we came into office issue of a referendum hanging over people. There is a in 2010, the overall employment level in north Wales real worry about whether we will get investment in jobs was at a nine-year low. Over the past four years, in Wales, and whether there will be certainty for the notwithstanding the remarks of some Opposition companies that are currently there and for new companies Members, we have seen some really health growth in the to come in. Of course, that is not to mention the huge labour market across Wales, but particularly in north support for the agricultural sector in north Wales through Wales. Unemployment across north Wales is 6.3%, which the common agricultural policy, or the European structural is lower than the Welsh average and lower than the funds, which help north-west Wales. That uncertainty is UK average. one of the key factors in this debate, and I hope that the One of the pleasures and privileges of my job at the Minister will take back that message to his party. Wales Office is that I get the opportunity to go out The other point on which we want certainty is industrial across Wales. Some of the most exciting, interesting and policy on energy prices and on what is happening to encouraging things that I see in the economy in Wales things such as the carbon price floor. The Chancellor are happening in north Wales, so I concur with all the has now put in a freeze, but it is rather late in the day. positive remarks made by Opposition Members about Manufacturers are still concerned, because they see that what is happening in the north Wales economy. I underline a unilateral tax was imposed by the UK Government that we are seeing a sustained fall in unemployment. and they then had to go to the EU to try to get some During the previous Parliament, unemployment in the state aid funding to mitigate it. constituency of the hon. Member for Wrexham (Ian Lucas) increased by 50%, but it has fallen by 10% since Stephen Crabb: You backed it; you supported it. 2010. In Delyn, unemployment increased by 110% over the five years of the previous Parliament, but since 2010 Nia Griffith: The Minister says from a sedentary it has come down by 17%. Of course, we want that to position that we supported it. We did not support it at progress and go further, but the trend is positive. I will the level at which the Government set it. What is important say a little more about that in a moment. is that we try to get some help in as soon as possible, rather than having to wait another two or three years, The right hon. Member for Delyn made an urgent because that will be vital for investment in some of our point about Creative Foods. We are aware of that industries and for whether they will be able to stay in situation and have had a discussion about it at the north Wales. Wales Office. In that case, as in the case of First Milk, in the constituency of the hon. Member for Clwyd South We have mentioned on a number of occasions the (Susan Elan Jones), and of the recent announcement by failure of the banks—the way they change their terms Avana bakeries in Newport, the Wales Office engaged and conditions and do no service to many of the small closely with the companies to see what we could do, in businesses in our region—and the work that needs to be conjunction with Welsh Government colleagues. It is no done to increase bank lending and foster a much more accident that all three of those companies, which announced positive attitude towards local businesses. significant job losses, are in the food sector. The hon. I would like to finish by mentioning the importance Member for Clwyd South raised an important question of borrowing. Borrowing is important to the Welsh about supermarkets creating vulnerabilities for the food Government and it is important for investment in north sector in Wales, and that is something that we should Wales. We very much support the measures in the Wales explore on another occasion. I reassure the right hon. Bill, which is currently going through Parliament, on Member for Delyn that we are certainly engaged on the issue of borrowing. We hope that the Minister will that matter. not only facilitate the interim funding that is supposed Returning to the subject of jobs growth, there is to come to south Wales, but ensure that the mechanisms positive growth across Wales, and particularly in north are in place for borrowing by the Welsh Government to Wales. The right hon. Member for Dwyfor Meirionnydd improve the economy of north Wales. That will mean (Mr Llwyd) said that the important thing was the that we can have a vibrant economy that is supported quality of jobs, not the quantity. In fact, the quantity of by investment on the English side in transport infrastructure jobs is important, because one of the ways in which we and mechanisms that will help north Wales, and on the can drive up wage levels is by creating more job competition. Welsh Government’s side by investment in transport More competition for job opportunities drives up the and broadband infrastructure. In that way, we can have wages that employers will offer. a flourishing north Wales economy. It is worth pointing out that over the past three years, average wage levels in north Wales have increased by 10.49 am more than 6%. They are not back to where we want The Parliamentary Under-Secretary of State for Wales them to be. There was a huge destruction of value in the (Stephen Crabb): It is a pleasure to serve under your economy following the crash of 2008, which happened chairmanship, Mr Hollobone, and to follow the hon. on the watch of the Labour Government, and that fed 199WH North Wales Economy1 APRIL 2014 North Wales Economy 200WH

[Stephen Crabb] hub at Crewe will open a hugely expanded range of opportunities for travel and for the economy of north through to wage levels. Real wage levels fell for people Wales. That is something that we very much support. right across the country. With the recovery, wage levels I cannot offer any immediate good news on the are starting to creep back up. Of course they are not Halton curve, which has been mentioned more than where we want them to be, but there is progress. Average once this morning. The UK Government have no immediate wage levels in Wales are increasing at twice the rate of plans to reopen that section of line, but we want to hear inflation, which also happens to be at a four-year low. the arguments. If the right hon. Gentleman is engaged There is positive growth. in work on the business case for reopening the Halton curve, I would like to see that, and I am happy to Ian Lucas: Since April 2010, real wages for women in facilitate discussions with the Department for Transport Wrexham have fallen by 4.6%. That is on this Government’s where possible. watch, and it is having a real effect on our local economy. On the point about ports, we have discussed before Stephen Crabb: I am not disputing the fact that the the £60 million fund that the hon. Member for Ynys situation as regards wages and jobs across Wales is Môn (Albert Owen) raised. I salute him for the work patchy. Of course it will be, during the early stages of a that he does in championing not only his local port, but recovery, but the trend is positive and will continue, the port sector across Wales. The fund that was announced bringing in new investment and creating more jobs. was an economic development fund designed to attract wind turbine manufacturing to port areas. He will be As Members in all parts of the Chamber have aware that economic development is devolved to the highlighted, manufacturing is one of the bright points Welsh Government, so the Welsh Government received of the Welsh economy; there is the involvement of the Barnett consequentials of that £60 million fund. companies such as Airbus, Kimberly Clark—in the They received the resources, so if it had been a priority constituency of the right hon. Member for Delyn—and for them, they could have initiated something similar Kronospan. Growth has not simply been generated by a for Wales. housing bubble in the south-east, as the hon. Member for Swansea West (Geraint Davies) argued in debate last night. There is real, balanced growth across all sectors Albert Owen: The Minister is trying to say that that is in Wales. an economic issue, but the Government changed the rules because they were worried about the impact of On energy costs for manufacturers, the package of state aid rules. On port development, will he join me in measures announced in the Budget by my right hon. condemning Stena Line, which is talking about changing Friend the Chancellor of the Exchequer was welcomed wages and conditions instead of investing in the ports widely across the manufacturing sector in Wales, particularly of west Wales—something that I know he is greatly by the energy-intensive industries that are so heavily concerned about? Stena Line wants to cut wages and represented in the Welsh economy. The measures directly conditions and race to the bottom, rather than investing address the concerns that the industry has raised with for the future. us. Companies such as Kronospan and Kimberly Clark are classified as energy-intensive industries and will benefit directly from that package. Stephen Crabb: No, I will not join in criticising Stena. I met with the company recently, and it faces a really Nia Griffith: Will the Minister do everything he can tough battle to stay competitive and keep those services. to bring forward those measures? The message from the It is a good company that has invested in the hon. industry is that it does not want to have to wait one or Gentleman’s constituency and in mine. We have to work two years; it would like help sooner. We would be most with it to see that it continues to make that investment. grateful for anything that he could do in that respect. The question of Europe was raised by several Opposition Members, and I repeat what I said at Wales Office Stephen Crabb: We are taking action. We are making questions last week: the vast majority of businesses available £240 million. We can make those substantial across the UK and in Wales strongly support our desire resources available on because of difficult decisions that for a change in our relationship with Europe regarding we have taken to cut the deficit and to put the national the level of regulation and the burden of cost that our finances back in order—measures that the hon. Lady membership places on the private sector. Businesses do opposed on every single opportunity over the past three not want to rush headlong to the exit and leave the or four years. We are taking action where we can, and European Union, but they want change. That is backed those measures have been welcomed by industry across up by comments made by those who run the Institute Wales. of Directors, the British Chambers of Commerce and I move on to transport, which quite a few Members the CBI. have mentioned. We at the Wales Office totally understand The point about multinationals being based in Wales the concerns and the desire for electrification of the and using it as a springboard into the European Union north Wales main line. That is something that the is important. I received a letter this morning from one Secretary of State for Wales, my right hon. Friend the of those multinationals, in which it welcomes the action Member for Clwyd West (Mr Jones), is personally very that we have taken on energy costs but raises concerns engaged in, and on which we are in close dialogue and about a regulation at the European level. Small and discussion with the Welsh Government and the Department large businesses in Wales understand our issue with the for Transport. The right hon. Member for Delyn is European Union, and they support the action that the quite right, because electrification of the north Wales Prime Minister is taking to reduce costs and the burden main line and the development of the High Speed 2 of regulation for Wales. 201WH North Wales Economy 1 APRIL 2014 202WH

In the few seconds that I have remaining, I again Grassroots Football thank the right hon. Member for Delyn for securing the debate. I look forward to discussing the issues again in future. 11 am Mr Philip Hollobone (in the Chair): Order. I thank all Mr David Crausby (Bolton North East) (Lab): It is a Members who took part in that very interesting debate. great pleasure to serve under your chairmanship, Will those who are not staying for the next debate Mr Hollobone. I thank the Speaker for granting this please leave quickly and quietly? We now move on to important debate, because grassroots football is in crisis. the important subject of Government support for grassroots The Football Association is about to lose £1.6 million football. I call Mr David Crausby. of public funding for the amateur game in England, after it failed to reverse a sharp decline in the number of people regularly playing football. Sport England says that that is a clear message that football must change its grassroots strategy. The FA has called the funding reduction disappointing. Frankly, it should be more than disappointed; it should feel ashamed, because if it is failing the grassroots game, it is failing the game itself and everything that the FA should stand for. Of course, it is not all the fault of the FA. Local authorities own 80% of pitches, and local government funding has been cut by 40% over this Parliament, with councils having to reduce their budgets by £20 billion by 2015-16. Local councils have tough decisions to make, and when faced with sacrificing investment in sport in order to protect vulnerable children and adults, they will inevitably—albeit reluctantly—opt for what they see as shielding the weak and defenceless. The lack of local authority investment in football is bad enough, but many authorities feel that they will have to increase fees dramatically, which will inevitably discourage participation in the game. One midlands council has proposed increasing the price of pitch hire for junior football next season from £382 to £1,613—that is a 323% rise. What with poor pitches, weeks of play lost to bad weather, no changing facilities, no showers, increasing pitch fees, poor families priced out and other families deterred by the shoddy conditions, participation is unsurprisingly falling. According to Sport England, 1.84 million people play football regularly—a fall of 100,000 since April last year. More than 2 million people played regularly in 200. We are witnessing a long-term decline. What was once a working-class game is steadily becoming a game that can be afforded only by those children with better-off parents. It is already difficult enough to drag our kids off the couch, away from the Xbox and into the car in order to play proper football in the open air, but for a child with poor parents who cannot afford the fees, let alone the kit and the football boots, and who do not have a car, the prospect looks even bleaker. Often, such children will be denied the opportunity to play. I met a married couple in Horwich in the constituency of my hon. Friend the Member for Bolton West (Julie Hilling) who do a fantastic job running a league and a team of their own. Those people are the absolute salt of the British earth, because without them the game would flounder and die. They are not unusual in being expected to pay for their training courses, and they frequently put their own money into the sport because they know in their hearts how much good they do. They told me that they had started a boot club, because one of their players turned up in wellingtons as his football boots had become too small. They now collect boots from children who have grown out of them and pass them on to others. 203WH Grassroots Football1 APRIL 2014 Grassroots Football 204WH

[Mr David Crausby] probably about six weeks’ pay for a top premiership player. Now, do not get me wrong: I do not blame I do not know about other Members present, but I young footballers for accepting £300,000 a week for hate the idea of wearing other people’s footwear, even playing a game that they would probably play for the in new socks. It takes me back to my days as a poverty- minimum wage. What do we expect them to do? Say to stricken child in the 1950s, but this is 2014. The fact is, the multi-millionaire owner of the club—the Russian we really should be doing much better. I know that oligarch, American billionaire, or Arab oil sheik—“No these are difficult, austere times for the country’s economy, thanks; keep the money and buy yourself another ocean- and no one really expects the Government to find the going yacht”? Of course not! Nor do I blame clubs in millions and millions of pounds needed to fund the the premier league for offering the money, because they game properly. However, while local authorities have are caught in a trap, knowing that if they do not pay lost income, the Premier League has been handed an players ridiculous wages, one of their rivals will. even greater windfall. Domestic broadcasting rights for The fact is that the market is broken. There are 2012-13, 2013-14 and 2014-15 were sold for £3 billion, clearly not enough talented young footballers, and, at with an estimated £2 billion expected from international the same time, billions of pounds are slushing around rights. That is £5 billion in total—nearly as much as the from TV rights. So what do we do? Well, it is not really value of Royal Mail. We need a new settlement for that complicated. We should invest much more in grassroots grassroots football. After all, it is the national game, not talent, and we should do it by using much more of the the Premier League’s game. money from rights. Jim Shannon (Strangford) (DUP): I congratulate the hon. Gentleman on bringing such an important issue to Jim Shannon: I thank the hon. Gentleman for being Westminster Hall for debate. Sport in Northern Ireland gracious in allowing interventions. Ards football club in is a devolved matter. The Department of Culture, Arts my constituency is in the Irish premier league. It is a and Leisure not only gives to teams in the premier locally focused, community-based club, and its relationships league, but filters moneys down to the intermediate and within Ards borough are the envy of many football lower leagues. Each level gets some of the money. clubs across Northern Ireland. It is focused on the Would the hon. Gentleman like to see that happen in community, which endears the club to the community. England as well? Does he feel that the Government should encourage more of that community-based spirit? Mr Crausby: I will come on to that later in my speech. We must have a bigger commitment from the Premier Mr Crausby: I very much think so. I am sure that the League in order to keep the game healthy and alive. Government do encourage the community to participate in grassroots football; my argument is that more money Andrew Bingham (High Peak) (Con): I congratulate must be made available to the volunteers who run the game, the hon. Gentleman on securing this debate. I spotted and that the place to take the money from is the lucrative that it was taking place only this morning, but I am a professional game. Committing 7.5% of the £5 billion great fan of local and non-league football. Does he from television rights would deliver £375 million over agree that such football is why people progress to watching three years. That would not exactly break the premier premier league football? As a small boy I watched teams league, and I do not envisage any starving players, such as Buxton, and that fostered an interest that attracted either. me to top-tier football. The harsh truth is that the Government should top-slice Mr Crausby: Absolutely. It is very much in the premier the TV money before it gets into hands of the professional league’s interest that grassroots football survives. That game. The professional game is a hugely competitive is why I started an online petition that called for a new business, and we cannot expect one professional football arrangement, whereby 7.5% of the proceeds from club to support the amateur game sufficiently if its broadcasting rights is used to fund grassroots football. neighbouring clubs do not. The premier league is the It called on the Government to ensure that grassroots envy of the football world, with huge amounts of football receives financial support from the Premier money pouring in and endless stories of enormous League, a call I repeat today. By the time it closed, the wages and excessive lifestyles. If English football is petition had received 30,599 signatures, and I did not doing so well, why do we allow all the money to stay at receive one message, by any means, of principled the top of the game and not filter down to the grassroots? disagreement from anyone. Why are our international teams so unsuccessful? The Of course, the Government responded when the number fact is that there is a short-term obsession with the of signatories to the petition passed 10,000—well, they premier league in British football. If we are to succeed did not actually respond right away, even though I as a footballing nation, we must broaden our horizons. wrote to the Leader of the House twice. I am sure that it Every Saturday morning, premier league scouts tour was a coincidence, but they responded just after midnight children’s football grounds scouring for talent. When on the day that I was listed on the Order Paper to put an they find it, they tempt the child and his parents away, oral question to the Minister, asking for a reply. Although delivering the best of coaching and facilities, not to the response was welcome, I am afraid to say that it was mention various other goodies, but leave all the other an apology for the football authorities, which even children in the team behind, with no changing facilities Sport England says have failed. and no showers, stripping off at the side of the pitch in The resolution of the grassroots crisis will, of course, the depths of winter. Talented young footballers are take a lot more money than the £1.6 million that has obviously important, but so are the rest. I want to live in been cut by Sport England. In the football world of a country where all of our children who want to play billionaires, £1.6 million is not exactly a fortune. It is football get the opportunity to do so. If we do not pay 205WH Grassroots Football1 APRIL 2014 Grassroots Football 206WH urgent attention to the grassroots game, there will be no 11.16 am one left in the UK for the professional football club The Parliamentary Under-Secretary of State for Culture, scouts to recruit, leaving the leagues to ever younger Media and Sport (Mrs Helen Grant): It is a great pleasure foreign players recruited from around the world, some to serve under your chairmanship, Mr Hollobone. I am of whom are, frankly, too young to be away from their grateful to the hon. Member for Bolton North East parents. (Mr Crausby) for securing this important debate, and to My concerns do not just include children. Football the hon. Member for Strangford (Jim Shannon) and my can make an enormously positive difference to the lives hon. Friend the Member for High Peak (Andrew Bingham) of developing young people. I talked to a mother who for their important contributions. Along with many told me that her two sons had been picked up by a parliamentary colleagues, the hon. Member for Bolton premier league club and were very well supported, but North East has been a vocal advocate for grassroots when they got to 15 and 16 years old, the club decided football for a considerable time. I reassure him that I, that they were not strong enough and let them go. The too, want a vibrant sports sector that encourages boys inevitably found that difficult to take, but what participation and provides opportunities up and down made it much worse was that once they were dropped the country. from the club, they had nowhere to play the game that Apart from the health and social benefits of sport they loved so much. participation, sport is vital to raising aspirations in In 1999, the football taskforce report committed the young people, and it has the ability to transform lives. Premier League to a 5% contribution of its broadcasting Through Sport England, we are committed to delivering income to grassroots projects, which was agreed, but community sport, including football, and the many the Premier League never fulfilled that commitment, programmes tackling barriers to participation in sport. and anyway much of the money has gone to professional The youth and community sports strategy, announced football clubs lower down the leagues. Less prosperous in January 2012, committed £1 billion of investment to professional clubs are important, of course, and I want community sport to 2017. The strategy is led by the them to survive as much as anybody does, but the national governing bodies of sport, which will receive grassroots game, especially children’s grassroots football, nearly £500 million of investment for 2013 to 2017 to is even more important to me, and it should be more deliver year-on-year increases in the number of people important to the country. playing sport. The present arrangement is just not good enough. The latest active people survey figures from December The Football Association, the Premier League and Sport 2013 show a long-term trend of sport participation England work closely together to invest in facilities increasing, which is very good and is what we want. through the Football Foundation, but between 2007 There are now 1.5 million more people playing sport and 2013, only 6% of football facilities were redeveloped. once a week than when we bid for the Olympic games in We clearly need many more artificial pitches. Grass 2005, participation among disabled people is at an pitches can sustain only five or six hours of football a all-time high and more women are getting involved, week, but artificial pitches can take up to 80. In the which is beneficial in closing the gender gap. I am present economic circumstances, we will not have the absolutely determined to see that progress continue. number of pitches that we need for at least another Football is, of course, an important part of that generation. picture, and the Government’s support for grassroots Andrew Bingham: The hon. Gentleman is being generous football is strong. Sport England is directing significant in giving way so often in a 30-minute debate. I concur. levels of funding at the sport to boost participation via We have an artificial pitch in my constituency at Glossopdale the national governing body and through other direct school; it can be seen as one comes over the hill into investments in programmes and facilities. Between 2013 Glossop. Every evening it is floodlit, and kids play on it and 2017, the FA will receive £28.4 million from Sport night after night. To mention something that we have England for delivering against its whole sport plan. not discussed, on Sundays there is football for elderly Football remains one of the biggest participation gentlemen—I actually qualify—which gets people of sports in the UK, with more than 1.8 million people my greying years out playing football as well. That must playing the game on a regular basis. However, there has be good for the health agenda. been a sharp fall of more than a quarter of a million participants in the last year, so clearly something has to Mr Crausby: Those pitches cost money, and the only be done. Several hon. Members have noted today the source of honestly available money is the Premier League’s £1.6 million of lottery funding that Sport England has billions. If we do not deliver the number of artificial withdrawn from the FA’s whole sport plan funding, as a pitches necessary, we may well destroy our seedcorn for result of the decrease in participation. I want more the premier league. people to get involved in all sport, and I am pleased that I end by quoting Bill Shankly, who once famously Sport England is committed to working closely with said: sports governing bodies to make that happen. However, “Some people believe football is a matter of life and death. I we have to get results from the £500 million of public am very disappointed with that attitude. I can assure you it is money that is invested through those bodies. If their much, much more important than that.” plans are not working, it has to be right that Sport I think Bill Shankly only applied it to Liverpool FC, to England invests some of the funding in other ways. be honest, but I apply it, as we all should, to the However, there will certainly not a financial loss for grassroots game. grassroots football. Instead, Sport England will reinvest that £1.6 million to create a grassroots “city of football”, Mr Philip Hollobone (in the Chair): I blow the whistle working in one place to create a range of new opportunities for half-time and call the Minister to respond. to encourage more people to play football regularly. 207WH Grassroots Football1 APRIL 2014 Grassroots Football 208WH

[Mrs Helen Grant] on community-focused projects and facilities, and as he will know, the constituent Premier League clubs often Sport England will also share with the FA the insights deliver significant programmes in their own local that are gained, to help the FA continue to grow the communities, independently of the FA’s collective action. game across the country. To date, that model has proved I will make a further point about the contribution successful in an intensive year-long pilot in Bury, which that is made by the Premier League. I just want to has looked at ways to break down barriers and to get clarify to the hon. Gentleman that during the next three the town’s women and girls more active and involved in seasons, it will redistribute more than £850 million in sport. I look forward to there being similar exciting total to help to strengthen football below the top tier, innovation in developing the football city. which includes solidarity payments to support the 72 clubs Although innovative opportunities can increase the in the Football League and the 68 clubs in the three appeal of, and participation in, all sports, high-quality divisions of the Football Conference. Those payments facilities for community sport remain absolutely essential are partly ring-fenced to support the work of those in supporting football. The hon. Member for Bolton clubs in their local communities. I know that such work North East referred to the importance of such facilities. is very important to the hon. Gentleman. I am very pleased indeed that Sport England has invested With regard to the question of whether any more can more than £80 million of Exchequer and lottery funding be done, let us see what can happen. I am open to in facilities for football during the past three years. It discussing new ventures with the FA and the Premier has also been working very hard to protect playing League. However, I believe that they are already making fields, to fund the Inspired Facilities programme, to significant contributions of their own accord, which fund iconic facilities and to improve existing sites. should not be underestimated. The hon. Gentleman also mentioned the undeniable The hon. Gentleman also rightly referred to the fact impact that the winter’s floods have had on sports that some local teams cannot afford the fees that local facilities in affected areas. I am sure that he has already authorities are charging to use various facilities. That read about this in newspapers and various statements, issue is of concern to me; I am aware of it and I am but I am pleased that we have been able to respond investigating it. I had a meeting with the FA this morning to the flooding with a £5 million Sport England fund to raised the matter again. I know that the FA and Sport support affected sports facilities. England are working hard on that issue, which has to be dealt with. All sorts of ideas are being considered, one We also invest in the Football Foundation, which the of which is encouraging the county football associations hon. Gentleman referred to, along with the Premier to work much more closely with local authorities to League and the FA. The new grassroots fund will manage community sports budgets. Ultimately, however, improve existing facilities and create new pitches across that arrangement sounds perhaps a little ad hoc, so the country, including the invaluable astroturf pitches some new model of ownership of sports facilities may that the hon. Gentleman referred to. I absolutely agree need to be looked at. However, I reassure the hon. with him that such pitches are brilliant at maximising Gentleman that I will work closely with others to establish the capacity of various grounds, and the contribution what can be done to deal with that important issue. made by the Premier League, the FA and ourselves amounts to more than £100 million during the next I hope that hon. Members will see the considerable three years. I hope to see many more 3G pitches constructed. sums of money that the Government and the football authorities are ploughing into football right across the Of course, that shows that it is not only the Government country. In my opinion, the outlook remains very bright who are investing in and funding expertise in grassroots indeed for opportunities to participate in football, and I football. The FA invests approximately £40 million a am pleased that the Government play a big part in that year to support its national game programme, most process. recently implementing the outputs of its youth development review. Typically, the FA spends a further £15 million a Mr Philip Hollobone (in the Chair): I am afraid that year on projects that benefit every tier of football, such there is no injury time in Adjournment debates, so I will as the FA’s Respect programme, which aims to improve have to suspend the sitting until 2.30 pm. the conduct of participants and spectators right across the game. The hon. Gentleman also referred to the contribution that is made by the Premier League. The Premier League 11.26 am is investing £56 million a season between 2013 and 2016 Sitting suspended. 209WH 1 APRIL 2014 UK Automotive Industry 210WH

UK Automotive Industry seeking to come to Britain to make use of our expertise? For example, Nissan recently announced its largest investment outside Sunderland—a new £6 million [SIR ALAN MEALE in the Chair] investment with ADV in my constituency. That sort of confidence from overseas companies coming to the UK is vital. 2.30 pm Gavin Williamson (South Staffordshire) (Con): It is a Gavin Williamson: My hon. Friend is absolutely correct. great privilege to have secured this debate about the Much of our success has depended on learning from United Kingdom’s automotive industry. I hope that we foreign businesses. They invest in the UK because they will approach it in a consensual manner, discussing see that we have the right environment and structures to some of the successes we have had and how we move succeed. the industry forward. I think hon. Members are here Since 2010, £7 billion have been invested in the not just because we understand how important the UK automotive sector, growing success and bringing jobs to automotive industry is to our whole economy, but because the UK. My constituency of South Staffordshire has we have a passion for the automotive sector itself. been incredibly fortunate to benefit from that investment; I am a great fan of the BBC’s “Top Gear”. It is one of Jaguar Land Rover has announced a £500 million those programmes that is on every Sunday, and I dedicate investment to build a new engine manufacturing facility myself to watching it. I am not sure whether you, on the i54 South Staffordshire site, creating 1,400 jobs Sir Alan, have the same enthusiasm for the programme, directly and another 3,500 jobs across the UK in our but I certainly do. One of the finest episodes I ever saw supply chain. was in the most recent series, where the last part of the episode was dedicated to celebrating the UK’s automotive Mr Jim Cunningham (Coventry South) (Lab): I am industry and everything we produce here, whether it sure that the hon. Gentleman recalls that one of the was a Dennis or Leyland truck; a product from JCB or starting points for the turnaround of the motor car Caterpillar; a Norton or a Triumph motorcycle; one industry was when Tata took over Jaguar—before the of many family cars that are produced in the UK by 2010 election, by the way. I remember meeting Tata at Toyota, Nissan or Honda; or some of the luxury cars the time, along with the trade unions. that are envied the world over—Bentley, Rolls-Royce, We once tried to get Nissan to invest in Coventry Aston Martin, Jaguar and Land Rover. airport and turn it around for car production. We did The episode also celebrated our success in Formula 1, not get the grants at the time, which is why Nissan went for which we are producing the finest racing cars in the to Sunderland instead. Nevertheless, we welcome any world—from Petronas, Red Bull and McLaren to Williams increase in production and manufacturing generally, and Lotus. The Italians hold nothing on us, as we beat but most importantly in Coventry and the midlands. consistently them. Quite simply, we produce the best in The motor car is a big thing; Coventry was once known Britain, and a lot better than what is produced in Italy. as the motor car city. I do not want this debate to be about how we produce better things than the Italians, the French or the Germans, Gavin Williamson: The hon. Gentleman is absolutely as it could go on for many more hours than the hour right. Let us not forget that the west midlands are the and a half that we have been allotted. Many people have beating heart of the automotive industry in this country. a livelihood in the automotive sector. Some 731,000 people The west midlands are what drive the automotive industry are involved in the wider automotive sector, while 146,000 and have the most to gain from an expanding automotive are directly employed in automotive manufacturing. industry. Almost one third of those employed in the The industry expects the sector to grow, not by 5,000 or industry live and work in the west midlands. That is why 10,000 jobs, but in the region of 100,000 extra jobs many hon. Members from the west midlands are present by 2020. for today’s debate. We know that it is important to our We are producing more and more. Often we look constituencies and our region to drive economic growth back to the ’50s and ’60s as the heyday of automotive and success. We have to be committed, both as a production, but we are rapidly gaining ground. Last Government and as constituency Members of Parliament, year, 1.5 million cars were produced in the UK. Production in order to support businesses, whether foreign or domestic, is forecast to be up to 2 million by 2017—more cars to invest. produced in Great Britain than ever before. Those are While much has been done, there is much more to do. high-value cars, which make a difference to our balance The hon. Member for Coventry South (Mr Cunningham) of trade. Some 10% of all the things that we export pointed to the success of Jaguar Land Rover, much of from this country are automotive products. which is down to research and development and which, We are the second largest exporter of construction importantly, lead to excellent products that people want equipment in the world. We are leading the field—for to buy. example, with JCB, which is based in Staffordshire—in developing technology and world-leading products. If Jeremy Lefroy (Stafford) (Con): I congratulate my we go to building sites in China, Russia, India and hon. Friend on securing this debate and on all the work Brazil, we can see British products digging the foundations that he has put in to ensure that JLR’s move to south for their economies. Staffordshire will be a great success. Does my hon. Friend agree that one of the areas in Dan Byles (North Warwickshire) (Con): Does my which the UK has a tremendous competitive advantage, hon. Friend agree that it is not just about British based on excellent, top-quality R and D, is the development products going abroad, but about overseas companies of engines? We have engine plants all over the country, 211WH UK Automotive Industry1 APRIL 2014 UK Automotive Industry 212WH

[Jeremy Lefroy] infrastructure. We need to help small businesses to grow so that they can become medium-sized businesses. We including in my constituency—although not for the need medium-sized businesses that are already supplying automotive industry—Perkins Engines, which makes the automotive industry to grow into large businesses, the largest engines. It is vital that long-term investment and we need to support them as they take their first in research and development in an area in which we steps towards investing in research and development. If have such a competitive advantage continues to grow. our automotive sector does not have a developed supply chain, it will become much more difficult for the sector Gavin Williamson: My hon. Friend is absolutely right. to develop the new products that it needs to succeed. He is right to point out the valuable work that Perkins Let us not be so naive as to think that large automotive Engines does to supply the heavy construction sector. companies do all their product development purely by We are seeing a build-up of expertise in engine design themselves; they do it hand in glove with their supply and manufacture, not just in the west midlands but chain, working incredibly closely to ensure that the right across the UK. That can be seen not just in JLR’s components, parts and products are in place for them to investment in its new plant or in Perkins’s work, but in deliver new models. BMW, which produces many of its engines in Hams Hall, and in Ford, as a third of its cars, which are Mr Jim Cunningham: The hon. Gentleman raises produced across the globe, have engines manufactured some interesting points. Talking about the supply chain—I in the UK. That is why it is vital that the Government will leave the automobile industry aside for a moment— keep their commitment to invest in research and unless companies such as Rolls-Royce get their spare development, whether through the Technology Strategy parts on time, they cannot finish their engines on time, Board or the regional growth fund. which often results in a financial penalty. That illustrates I am pushing for the Government to support and the point that it is vital that we get the supply chain commit to the regional growth fund, and I hope the right, whether we are talking about the automobile Minister will reassure us on that. I seek real Government industry, manufacturing in general or companies such commitment to help British industry and automotive as Rolls-Royce. production so that the technology and research and development bases may grow and develop. It is vital Gavin Williamson: The hon. Gentleman makes another that R and D is based here in the United Kingdom, strong point. When the disaster happened in Japan, because if we can get businesses to invest in R and D in many Japanese companies that produce large numbers the UK, they will often base their manufacturing here, of automobiles here in the UK were badly hit by too. disruption to their supply chain. There is a real benefit, not just to the British people but to companies based Mr Jim Cunningham: I congratulate the hon. Gentleman here in the UK, in having more of the supply chain on on securing this debate. An important driver in the west our doorstep. We need to do all we can not just to midlands, and certainly in Coventry and Warwickshire, encourage small and medium-sized businesses but to is the university of Warwick, where a lot of research encourage foreign businesses to invest in the UK. and development and business innovation take place. I would like the Government to consider more closely Many companies, including companies from Germany, how to give foreign investors greater reassurance that, if are investing because of that research and development, they invest here in the UK, they will have the support which helps the economy not only of Coventry and they need, whether through the regional growth fund or Warwickshire but of the west midlands. That is vital. some other mechanism. That would help the UK to attract such investment. The Government must consider Gavin Williamson: The hon. Gentleman is correct. how we can reassure companies that we will give them The finest engine ever produced is being designed and training and skills support so that they have the right engineered at Whitley in his constituency and will be work force to deliver and manufacture their goods here built in my constituency by Jaguar Land Rover. Having in the United Kingdom. Education and skills are vital that research and development based here in the United to this high-tech industry. Although we are making up Kingdom is vital when businesses decide whether to ground, we still lag a little behind other countries. Every invest in manufacturing in this country. Sadly, we do automobile manufacturer always says that its area of not have enough manufacturing, and we need more, greatest concern is whether the skills will be in place for which is why I urge the Minister to do all he can to start the next generation of workers. a dialogue with manufacturing companies, whether it is Nissan, Toyota, Honda or any of the many others, to Caroline Nokes (Romsey and Southampton North) carry out more research and development here in the (Con): I congratulate my hon. Friend on securing this UK. Some of the greatest automotive designers have debate. Will he join me in congratulating automobile come out of British design schools, and some of the companies such as Ford, which already has 68 advanced best technical expertise comes out of British universities, apprentices in engineering and 15 higher apprentices in but we have to leverage that much more. engineering? Ford is going further this year and has One of the UK automotive industry’s great weaknesses committed to an additional 50 apprentices in both is our supply chain. Although we have a very developed engineering and craft at the higher level. assembly sector, the supply chain is incredibly weak. The industry runs a trade deficit of close to £7 billion in Gavin Williamson: I congratulate companies such as components that have to be imported, which is not Ford on their work. In the run-up to 2018, the automotive good enough. We need to make progress by encouraging sector hopes to take on 7,600 new apprentices and businesses to invest in the UK from abroad, but we 1,700 new graduates. The sector is a growth area for also need to strengthen our supply chain’s domestic young people, which is one reason why I am championing 213WH UK Automotive Industry1 APRIL 2014 UK Automotive Industry 214WH a £5 million investment in an engineering studio at my might be aware that Unipart’s after-market logistics local high school in Codsall. Such a studio will concentrate were, with Jaguar Land Rover, the overall winner at the on training the engineers and designers of the future so independently assessed European supply chain excellence that South Staffordshire can provide the very best work awards last year, reflecting innovation, delivery and force to Jaguar Land Rover and the aerospace sector collaborative commercial success over many years. We and companies can grow with the best talent. have examples of excellence in this country that can be built on and emulated. Jeremy Lefroy: Does my hon. Friend agree that we I take this opportunity to praise the achievement of also need electronic engineers and software engineers? the 4,000-strong work force at Cowley and BMW’s So much of the inside of a car these days is made up of investment of £1.75 billion in the UK, which has made electronics and software. possible the continuing stunning success of the Mini. It is a very good example of what can be achieved by Gavin Williamson: My hon. Friend makes a valid British manufacturing in the most competitive markets, point. At the weekend, I took my two daughters to the so long as there is the right investment, the best design Enginuity museum at Ironbridge near Telford. We saw a and engineering, a skilled and committed work force cross-section of a Mini. Although the design is amazing and a management adept at securing continuous and out of this world, it is all pulleys and levers. Now, improvement in product quality and responsiveness to much of a Mini’s design is down to electronics. We must customers. Whenever I visit the plant, I am struck by not forget how high tech or capital intensive the automotive just what a staggering logistical accomplishment it is to industry is, but it is about getting the skills and technology manufacture a car these days. The Mini has 3,600 parts, in line, and the Government have an important role in arriving from several suppliers in different parts of the ensuring that that happens. Let us not forget that if UK and abroad, with countless variations per model, youngsters and people of all ages do not have the skills, five different models going down the line at the same and if we do not support companies constantly to skill time and the right parts arriving in the right place in the up and improve their work force so that they can move right order at the right time. I cannot help thinking that forward, we will lag behind. if Government policy, and IT projects in particular, I am conscious that other people want to take part in were delivered as well as car production, we would all be this debate. In summary, I seek assurance from the a lot better off. Minister that the Government are committed to ensuring Partnership with trade unions is important. Industrial that the regional growth fund continues to deliver jobs relations at Cowley have been transformed since BMW and investment not just for the west midlands but for took over. That is not because the union is weak or has the whole country. The fund has already achieved a caved in—it has not—nor just because BMW’s ownership great deal, but it can do more. Let us not kid ourselves, and management are so much better than what went because the automotive sector is one of the most before, although they certainly are. That transformation international industries in the world. The sector can has happened because there is a constructive partnership, move to virtually any country. We would be very naive with real commitment to and a mutual interest in to think that countries such as Germany, Italy, France, success. Negotiations are sometimes hard, but the outcomes Spain, Portugal, India, China, Russia, Brazil and the are good. A recent example was Unite’s success in United States are sitting back and not being proactive securing agreement that 1,000 agency workers on temporary in attracting investment, because those Governments contracts would become eligible for permanent contracts, are going out to seek and deliver investment. I want to giving a massive boost to security and well-being for the see the Government continuing to do that, ensuring workers concerned and their families. The Mini plant is that it is clear to everyone not only that we have the not only a premium employer locally, but is leading the most skilled work force and the best designers in the way in training, with £1 million invested in its Oxford world and produce the best cars, but that we are the best training school and 95 apprentices. It is important for place to produce them. the future of the plant that we nurture the skills and application needed to sustain advanced manufacturing Sir Alan Meale (in the Chair): Order. Before we success. continue, I have permission from the Speaker to impose Across the industry, the quality of apprenticeship time limits on speeches if necessary. Seven Members training remains too variable. The Minister should look, have indicated that they want to speak, and we need to through the Automotive Council, at how we can achieve give a proper opportunity for the Minister and the a standard automotive framework with high levels of shadow Minister to respond. I will impose a five-minute quality assurance. We also need to sustain a competitive limit on speeches, which includes any interventions. It business environment, simplify energy efficiency regimes is up to individual Members to decide if they want to and keep business rates down. Through that, we can give way. build on the Mini’s fantastic success, with 2.4 million models produced and 80% of production exported to 2.50 pm 108 different markets. That represents a massive Mr Andrew Smith (Oxford East) (Lab): I congratulate contribution to the UK balance of payments, exemplifying the hon. Member for South Staffordshire (Gavin UK manufactured export achievement at its best, and is Williamson) on securing this debate, and I join him in a performance the country needs to emulate more generally. his paean of praise for all sectors of the UK automotive The new model of the new Mini went on sale last industry and his ambition for its future. He referred to month and is showing every sign of carrying that success Jaguar Land Rover; its success is great news. I am forwards, with more than 4,000 UK orders taken even pleased about the part that Unipart, which is based in before it was in showrooms. Obviously, as with every my constituency, has played in that success. On the other car Britain is looking to export, what we most important point he made about the supply chain, he want is sustained world economic growth in demand, 215WH UK Automotive Industry1 APRIL 2014 UK Automotive Industry 216WH

[Mr Andrew Smith] feature of the past decade and has widespread positive benefits. Improvements to manufacturing processes have but through this recent difficult period, the Mini has reduced energy use by 43% and water use by 48%. shown what is possible. I thank the work force for all Another key Government focus, on skills and that the success of the Mini means to Oxford, and our apprenticeships, is also having a significant positive partners in both the Mini production triangle at Swindon, impact on the manufacturing and automotive industries. where the body panels are made, and the engine plant at Developing a more skilled work force starts in schools, Hams Hall, which enabled Mini engine production to where a variety of schemes are in place to encourage be repatriated from Brazil. I also thank BMW for the the uptake of STEM subjects and to encourage career sustained investment and its commitment to the future, paths through apprenticeships. The Government’s which can keep Plant Oxford and all its workers in my introduction of employer-led and designed apprenticeships constituency at the forefront of automotive success for is important and allows skill development to be tailored years to come. to the needs of the sector. 2.56 pm My constituency has a proud tradition of manufacturing, and I am particularly pleased that the automotive business, Chris White (Warwick and Leamington) (Con): I am both locally and in the wider economy, has improved delighted to congratulate my hon. Friend the Member greatly over the years. We must ensure that Britain for South Staffordshire (Gavin Williamson) on securing continues to build on the momentum of recent years this debate, and I am also pleased to follow the right and continues to be the home of a thriving automotive hon. Member for Oxford East (Mr Smith). I worked for sector. MG Rover, which was one of the most iconic firms in the country, between 1997 and 2004. When I suggested 3pm to the work force that I wanted to become a Member of Parliament, they took it with much hilarity. As I did not Jack Dromey (Birmingham, Erdington) (Lab): It is a make it in 2001 or 2005, they were partly right. I did say, pleasure to serve under your chairmanship, Sir Alan. however, that if I ever got to this place, I would be I received an e-mail on Sunday from a young man delighted to speak on behalf of our manufacturing from Castle Vale who was desperate because he has community and, in particular, our automotive sector. been out of work for two years—one in four young It was interesting to hear from the right hon. Member people in my constituency is out of work—and he said, for Oxford East about the success of the Mini, which “Jack, can you help me to get into Jaguar Land Rover?” was one of the reasons for the demise of MG Rover—it For him, times are bleak, but Jaguar Land Rover’s did not have the good fortune of manufacturing the remarkable transformation and success story over the Mini at its plant—but I congratulate him on his particular past five years offers hope. success. I am delighted to see the hon. Member for The future looked bleak when Ford was in control. Birmingham, Northfield (Richard Burden) here. He When I was elected in 2010, the assumption was that was the first Member that I debated against, when I was the Jaguar plant would close. Mercifully, Tata, an excellent working at the MG plant. company, took over and brought in two outstanding As co-chair of the all-party manufacturing group Germans, Carl-Peter Forster, managing director and and the Member for Warwick and Leamington, I am group chief executive officer of Tata, and Ralf Speth, aware of the importance and enduring heritage of the new CEO, to have a fresh look at the business manufacturing and the automotive sector supply chain, together with the remarkable Lord Kumar Bhattacharyya. which runs through the whole west midlands, as my I remember meeting them within days of the general hon. Friend the Member for South Staffordshire said. I election, as they were having a fresh look at the fortunes am also very much aware of the need to re-shore of Jaguar Land Rover, and two points stick out in my manufacturing and encourage the export of British-made mind. goods. The trend of re-shoring is growing, I am pleased First, the people brought in by Tata said that to say. A recent report from the EEF found that one in notwithstanding the run-down of the automotive industry six firms has brought part or all of its production back in the west midlands, there were great residual strengths. to UK suppliers. The Minister has encouraged and There are both primes and component companies, from achieved action on reduced operating costs, affordable GKN on the one hand to Jaco-Sumal, which employs finance and investment. Britain has the most productive eight engineers just off Erdington High street, on the automotive sector in Europe and in 2012, as has been other. There are logistics companies, research and recognised, we exported more vehicles than ever before. development facilities and universities, such as the university Until recently, it was often assumed that manufacturing of Warwick. That goes all the way down to the midlands’ cars in Britain was a thing of the past, but new technology world-class games industry, with which the automotive and a renewed focus on research and development in industry wants to collaborate on the next generation of recent years has turned that around. The national in-car entertainment. Secondly, they said that they welcomed automotive innovation campus at the university of Warwick the Labour Government’s commitment to an automotive is one example of that renewal. An investment of nearly sector strategy and the incoming Government’s commitment £100 million over 15 years will provide an unparalleled to continuity of policy. centre for research and innovation, which Members will Over the past four years, what we have seen is nothing recognise as a magnet to bringing manufacturing home. short of a remarkable transformation. Jaguar Land Over more than 30 years, the Warwick Manufacturing Rover is now one of the jewels in the crown of British Group has been a clear example of how collaboration manufacturing. Like my right hon. Friend the Member between universities and industry can benefit both sectors for Oxford East (Mr Smith), I want to pay tribute both and provide a strong foundation for practical and innovative to the company and the work force. It is sometimes research. Making cars more efficiently has been a defining popular in this place to knock Unite, which does get it 217WH UK Automotive Industry1 APRIL 2014 UK Automotive Industry 218WH wrong from time to time, but its role in the transformation side and to corner the market in everything that goes of the automotive industry and in what happened at right for our side, but the automotive sector does not Jaguar Land Rover has been nothing short of outstanding. work that way. The reality is that all major political I have two points about what the next stages should parties underestimated the importance of manufacturing be. First, I hope that the Government back Jaguar Land for too long, but that has now turned around. Rover’s skills bid. The hon. Member for South Staffordshire The automotive industry has been a trailblazer, with (Gavin Williamson), whom I congratulate on securing great partnerships within the industry, which my hon. the debate, was right to focus on skills. JLR wants 5,000 Friend the Member for Birmingham, Erdington and my more people in its factories and 20,000 in its supply right hon. Friend the Member for Oxford East (Mr Smith) chain. It is already running into skills bottlenecks and is discussed, but also with the Government and with therefore crucially working with its supply chain, but it Parliament. The industry forum that thrived under the needs Government support if it is continually to ramp previous Government was a building block of that up the necessary skills. success, as was the creation of the Automotive Council, Secondly, just when we are seeing a major transformation which creates road maps for future issues facing the of the industry into a world-class success story, it is industry, such as skills and the low-carbon agenda. crucial that we do nothing to put it at risk. The continuing Other hon. Members have referred to the figures that uncertainty over our membership of the European Union highlight the automotive industry’s success story. Despite is damaging to the automotive sector. Inward investment your offer that I can speak for longer, Sir Alan, I will is key to the success of the sector, but key to inward not repeat them, but suffice it to say that some of the investment is our continuing membership of the European figures are startling. Union. The problems within the Conservative party I want to discuss something that the hon. Member over membership of the EU do not help to secure the for South Staffordshire mentioned, namely the role of industry’s medium to long-term success. the motorsport and performance engineering industries In conclusion, we are rightly celebrating a success in the automotive sector. Eight of the 11 Formula 1 story, but we must sadly mourn the fact that Dunlop teams are based in the UK. Lewis Hamilton won the Motorsport is leaving these shores after 125 years of Malaysian grand prix on Sunday, which was very good, production in our country. It is a bitter irony that just and the results state that he was driving a Mercedes, when automotive industry is increasingly onshoring its which he was, but that Mercedes was built in Brackley. supply chains, Goodyear, which is based 3,500 miles The factory in Brackley has been Honda, Brawn and away in Ohio, is offshoring. Having said that, the main Mercedes, but it has always been British. Motorsport emphasis today has rightly been on celebrating and companies are involved in so much more than what building on the success stories, but the Government’s many people usually think of as motorsport, such as role is crucial. the fantastic work being done in a range of areas at the McLaren Technology Centre by McLaren Applied 3.5 pm Technologies. How many people know that the skeleton Richard Burden (Birmingham, Northfield) (Lab): It is sled on which Lizzy Yarnold did so well at the winter a pleasure to follow my fellow Birmingham Member of Olympics was designed by McLaren here in the UK? Parliament and hon. Friend the Member for Birmingham, Williams Advanced Engineering’s centre is also doing Erdington (Jack Dromey) and the hon. Member for much great work, and companies such as Prodrive and Warwick and Leamington (Chris White), whom I have Cosworth are also involved in state-of-the-art work. known for many years—I remember well that first The UK, however, is the home of motorsport not debate. I also congratulate the hon. Member for South only in Formula 1, but in so many other ways. The Staffordshire (Gavin Williamson) on securing the national and grassroots series are among the building debate. He started off his remarks by talking about blocks that make our motorsport and performance “Top Gear”, and I think I may be the only Member in engineering industries as world-class as they are. The this debate who has actually been on the programme. I premier national racing series is the British Touring Car appeared on a feature looking for the fastest political championship, the opening round of which was on party, and the good news, at least for the Opposition, is Sunday. The main sponsor of the series is Dunlop that I soundly beat the Conservative candidate, but the Motorsport. Why therefore is Dunlop Motorsport, as rather bad news is that I was beaten by the Legalise part of that cluster, turning its back on the home of Cannabis Alliance, so I do not necessarily talk about motorsport? When the Minister responds, will he update that too much. the House? I know that approaches have been made on Sir Alan Meale (in the Chair): Order. As a result of the matter from both sides of the House. My hon. Members kindly keeping their contributions short, we Friend the Member for Birmingham, Erdington and I have the opportunity to allow a little more time to have worked hard on the issue, and it needs to be said to subsequent speakers. The hon. Gentleman can now Dunlop that it has still not answered satisfactorily the speak for reasonably longer than he was planning. questions that have been put to it, and that the reasons it has given for doing what it seems intent on doing have Richard Burden: Thank you, Sir Alan, it is much not been convincing. It will be bad for motorsport, for appreciated. the cluster and for Dunlop if it goes ahead with what it As my hon. Friend the Member for Birmingham, is doing. Erdington said, ask anyone in the automotive industry I mentioned the British Touring Car championship. what they want from Government and two words will Two of the races on Sunday were won by Hondas built come up time and time again: continuity and predictability. in the UK. The road car, the Civic, is also built in the It is not always exciting for politicians, because we all UK. Despite the success of the automotive industry, we love to blame everything that goes wrong on the other sometimes find things that are not great, and it is worth 219WH UK Automotive Industry1 APRIL 2014 UK Automotive Industry 220WH

[Richard Burden] There is a huge skills agenda to be developed and so much more yet to be done with the supply chain to pausing for a moment to reflect on the fact that just in ensure that we achieve our potential. the past week Honda has had to cut back on some shift In conclusion, I hope that the Minister will say a few working at Swindon, which is something to be mourned words about Dunlop, because that is still not a done by all of us. If we ask the people at Honda why that it is, deal and we still need to apply pressure. I hope that he they say that it is about the market for their cars, and will join me in applauding the work of the Automotive crucially the European market. Europe is still the largest Council. I also hope that he will say a little more about export market for UK vehicles. the advanced propulsion centre; about how the UK will In my constituency, Shanghai Automotive still produces accelerate on the ultra-low-emission vehicle agenda, MGs and has its European technical centre there as a because we are lagging behind other countries in the base, a foothold and a bridge into Europe. The hon. take-up of such vehicles; and about what we can do to Member for South Staffordshire was right that the better address the concerns expressed by the industry automotive industry needs reassurance, but it needs about skills and the supply chain. reassurance that we will not play fast and loose with our membership of the European Union. That is important 3.16 pm not only to the motor companies exporting into Europe. Caroline Nokes (Romsey and Southampton North) Jaguar Land Rover, for example, has fantastic export (Con): I appreciate the opportunity to speak in the achievements in other parts of the world, but ask it and debate, which I had not intended to do, but with the those who want to export to the United States about the slight west midlands bias I thought that I might divert European Union and they will also say that continued attention back down to the south-east and speak about membership is vital to them, apart from anything else a specific aspect of the automotive industry and the because of the free trade agreements and other ongoing impact that it has had on my constituency. negotiations. I accept that the Conservative party might I imagine that the instant inclination is to think that I have one or two problems, looking at its flank with the will talk about Ford, and of course it was a huge loss to UK Independence party, but frankly the interests of Southampton when the Transit plant closed last year. Britain are more important. Continued membership of In fact, the Transit had been made in Southampton for the EU and reducing the uncertainty about our membership my whole life and, historically, there were always adverts are very important. in the local paper claiming Southampton as the home On the supply chain, the hon. Member for South of the Transit. I pay tribute to the hard work of Ford to Staffordshire was right that one way in which we can ensure that an automotive base remains in the city, as and should do more is by ensuring that its component well as a level of employment in my constituency that, sections—the original equipment manufacturers—in the at the time of the original announcement to close the UK are firmed up and developed. About two years ago, plant, we had not expected. One hundred and thirty-four KPMG produced an important report for the Society jobs remain in the city, but much of the focus has of Motor Manufacturers and Traders which showed moved to the port and to the export of vehicles through that about £3 billion-worth of opportunities are being Southampton docks. missed in the supply chain. That is why it is important Even at the height of the recession, when economic forustodomore. conditions were difficult, we saw significant expansion in Southampton, particularly of multi-deck car parks. Some good things are going on: the Automotive Massive numbers of cars from all the main manufacturers Investment Organisation, headed by Joe Greenwell, that have been mentioned this afternoon are exported formerly of Ford of Britain, has been set up to attract through the port of Southampton—at the moment the vital foreign investment, which is good news; the figure stands in the region of 0.5 million vehicles every advanced manufacturing supply chain initiative has been year. We rightly regard the port as one of the significant established, which is good news; and the advanced economic drivers of our entire region. I was privileged propulsion centre is being established, which is important to be there yesterday at the opening of the new to ensure that there are opportunities for small and Southampton container terminal, SCT 5, and there was medium—and not so small and not so medium—companies no doubt that the emphasis was on the automotive in the development of ultra-low-emission vehicles and sector and its contribution to jobs in the city and to the so on. export of cars through Southampton. We need a sustainable framework, however, which is Ford did a fantastic job locally, in partnership with why the hon. Member for South Staffordshire was right the university, on the Ford scholarships, providing to stress the importance of predictability and speed of 10 scholarships a year of £10,000 to young people action by things such as the regional growth fund. I seeking engineering jobs in the automotive industry. believe that it was a mistake to get rid of the regional Significantly, 50% of the scholarships have gone to development agencies. We may disagree about that, but women. I notice that the debate has been all-male so far they at least provided a framework for making decisions this afternoon, but there is role for women in the and ensuring that those decisions were carried through. automotive industry. I remember the chairman of Ford All too often, things are too hand-to-mouth at the telling me several years ago that some of the attitudes moment. I hope that the Minister will address that towards women that he encountered in Westminster issue, because the automotive industry is very much the would not be tolerated on his factory floor. He is jewel in our industrial crown. absolutely right; Ford has been a trailblazer in ensuring Many other sectors in the UK and beyond are asking, that the automotive industry is one in which there is an “How did you do it in automotive?” They want to copy equal place for women. I congratulate Ford on that, as I things such as the Automotive Council or the partnership. congratulate my hon. Friend the Member for South That is good news, but we must not rest on our laurels. Staffordshire (Gavin Williamson) on securing the debate. 221WH UK Automotive Industry1 APRIL 2014 UK Automotive Industry 222WH

3.18 pm Unfortunately, we lost our way for a while and stopped pushing at the design boundary and quality mark. The Mr Iain McKenzie (Inverclyde) (Lab): It is a pleasure world overtook us. Most significantly, at first, the Japanese to serve under your chairmanship today, Sir Alan. I, took quality to a new level. However, the way of thinking too, congratulate the hon. Member for South Staffordshire I have described is being revived by manufacturers in (Gavin Williamson) on securing the debate. the UK, including Jaguar Land Rover and Nissan, not Today in the UK, we produce more than 0.5 million to mention bus and truck builders. The vehicles they are vehicles and 2.5 million engines each year, of which we developing and the innovative designs they are offering export some 80%. That equates to a vehicle rolling off are the reason why they are winning markets. That is the production line every 20 seconds, making us the why I firmly believe we need to plan for manufacturing; 14th largest producer in the world. Of course, as we the resurgence cannot be left to chance, or to peter out. have heard, the west midlands dominates the car We need to plan for continued success and maximise manufacturing industry in terms of employment, but benefit around the country. The Government need to UK manufacturing industry as a whole employs about encourage more research and development and put 2.6 million people, which is 8% of all jobs. Sadly, only their foot on the accelerator. 2,000 people now work directly in the automotive industry We need small and medium-sized firms to be a critical in Scotland, but I am old enough to remember the part of the supply chain. How do the Government heady days of manufacturers such as Rootes and Chrysler intend to promote a fully integrated UK supply chain just up the road from my constituency in Linwood. and green procurement? We need to overcome supply What plans do the Government have to encourage and demand problems in relation to products and skills, vehicle manufacturers to locate elsewhere in the UK and we need to tackle the culture that refuses to take and to take advantage of Government help north and pride in professions such as engineering and prevents south of border and the skills that still exist in those good manufacturing firms from coming to schools to areas of the country? talk to young people. We need high-skill jobs; we need We should not forget that there are also jobs in the to win the race to the top; and we need many more supply chain. More than 2,000 UK companies regard apprenticeships like the one I served. We need to move themselves as automotive suppliers, and they employ up the chain of employment and skills. about 82,000 people. The UK automotive supply chain Any plan should include green jobs in the automotive generates £4.8 billion of added value annually, with an industry. We need to design cleaner factories and vehicles, estimate now of a possible further £3 billion if the along with cutting-edge production flow and quality opportunities are taken. They should be taken, because assurance techniques, to embrace fully the culture of about 80% of all components required for vehicle assembly right first time and defect-free manufacturing. We need operations can be procured from UK suppliers. I repeat procurement that sources around the country to create my question to the Minister about how he is encouraging jobs, but we also need to reduce lead times and promote sourcing from UK suppliers. a just-in-time procurement practice that complements a constant-flow production strategy. We need to end the What will build the future of the automotive industry competitive strategies that value low wage costs over a in the UK? It can probably be summed up in a few trained work force. For the consumer, price is not the words: innovation and quality in design. Innovation only factor when purchasing. means product improvements, and challenging accepted practices, processes and design limitations. This country As we have heard, one of the most important issues has been a trailblazer of vehicle innovations that pushed for the industry and the country is the debate about the boundaries and showed our competitors a clean pair of UK’s membership of the EU. Ahead of the European heels. In the past those innovations included transverse election, the Society of Motor Manufacturers and Traders engines, limited-slip differentials and independent wants to ensure that its voice is heard in the automotive suspension, as well as numerous safety features and a sector. Given that we are a significant part of a global reduction in weight by using new metals to build our industry, and that 80% of all cars manufactured in the engines. I could go on—I am an old mechanic and I UK are exported, the SMMT has commissioned a could spend hours reciting British vehicle innovations. report, to be published tomorrow, that will provide an economic assessment of the value of the EU to the UK Quality in design is what makes products timeless. automotive industry. Anyone who thinks of iconic cars of the past will recognise that British design is there. Hon. Members Labour is clear that business is the solution, not the have spoken fondly today of the forerunners of the problem. A plan for manufacturing, with business working small family cars we see so much of today, such as the in partnership with the Government, is central to building Mini, whose subframe chassis allowed the first transverse an economy that works for everyday working people, engine, with new positioning of the gearbox. That was a resolving the cost-of-living crisis, delivering jobs that revelation. The Hillman Imp, built in Linwood in Scotland, pay a wage people can live on and ensuring that we can had a cutting-edge rear-mounted aluminium alloy engine. pay our way in the world. All that can be made in Great With its less than 1-litre engine size it produced the Britain. same power as a much larger vehicle by cleverly optimising a 9:1 swept volume ratio. That gave sports car performance 3.26 pm to a small family saloon. Further up the market range Mr Iain Wright (Hartlepool) (Lab): It is a pleasure to are classics such as the E-Type Jaguar, which is still one serve under your chairmanship again, Sir Alan. I thank of the most iconic sports cars around. With its limited the hon. Member for South Staffordshire (Gavin slip differential it was the forerunner of the 4x4. The Williamson) for securing the debate. It has given us a weight that heavy goods vehicles can now carry is the welcome opportunity to discuss what he rightly said is result of our development of the air braking system. a hugely important part of the British economy. 223WH UK Automotive Industry1 APRIL 2014 UK Automotive Industry 224WH

[Mr Iain Wright] Land Rover. As my right hon. Friend the Member for Oxford East said, trade unions often get a raw deal in I think that the hon. Gentleman began by mentioning the media and the House. However, we must give Unite Italy; he also mentioned the importance of the west credit for playing a leading and proactive role in the midlands for the UK automotive industry. That is true, automotive industry in general. I am pleased that it did but in God’s own country, the north-east of England, a so much great, proactive work to ensure the next generation single Nissan plant produces more cars than the entire Astra will be built at Vauxhall’s Ellesmere Port plant. I Italian car industry. That is a remarkable achievement hope that the Minister agrees that the collaborative and shows how the British car industry has been approach of the industry, the work force and the transformed. Forty years ago, it was a symbol of industrial Government is the model we should take forward for decline, inferior products, obsolete manufacturing processes, the long term. poor industrial relations and a lack of competitiveness. To ensure the UK’s automotive industry achieves its The sector has undergone a remarkable and welcome potential, we must address the issues surrounding the transformation in fortunes in the past seven or eight supply chain. The Automotive Council estimated that years. As the hon. Gentleman said, the task for all of us an additional £3 billion per annum could be provided in is to maintain that competitive edge for the UK automotive the UK’s automotive supply chain—a 40% increase on sector, with an emphasis on high productivity, high skill current levels of UK-based supply chain activity.Reshoring levels and innovation, with the aim of raising living is an exciting opportunity. KPMG estimates in its excellent standards for all within the industry. report from about 18 months ago, “Capturing opportunity”, As has been mentioned, there has been great news that supply chain opportunities could result in tens of recently, including the launch of the new Quashqai by thousands additional jobs in the UK automotive supply Nissan at its plant in Sunderland, the new factory being chain by 2017. The prize of more and better-paid jobs, built by Jaguar Land Rover in Wolverhampton, and the additional industrial capability and renewed competitiveness new Mini in Oxford, but there has been bad news too, is huge, and we must grasp it. That is why the Labour with the recent announcements at Honda. Anne Snelgrove, party asked Mike Wright of Jaguar Land Rover to whom you will remember from her time in this House, undertake an independent review of the manufacturing Sir Alan, has been championing the issue in Swindon. supply chain to ensure that it is as collaborative, co-ordinated Last month, my hon. Friend the Member for Streatham and competitive as possible. (Mr Umunna), the shadow Business Secretary, framed Will the Minister update the House on what he is the challenge facing the British economy, terming it doing to bring more of the global supply chain in the Agenda 2030. It has four clear pillars: active government sector to the UK? How many firms in the automotive investing for the long-term; liberating the talents of all; industry have received funding from the advanced solving tomorrow’s problems today; and an outward- manufacturing supply chain initiative? Does he plan to looking, open approach to the world, not isolation. I put AMSCI’s funding on a more permanent footing to want to base my discussion of how we can maintain the give industry the long-term ability to plan for the future? comparative advantage of the UK automotive industry As the Minister knows, access to finance remains a on those four pillars. problem in the supply chain. Firms often require funding As for an active industrial strategy, it is, as my hon. to purchase tooling to complete an order, but they are Friends the Members for Birmingham, Erdington (Jack not paid by the customer until the products are shipped, Dromey) and for Birmingham, Northfield (Richard which puts immense pressure on their cash flow and Burden) said, vital that the Government provide long-term undermines the potential of the UK automotive supply policy certainty and predictability which transcend electoral chain. We need the banking system to work with and and political cycles and align more closely with industry’s for British industry, especially the excellent and promising investment and process cycles. We should be thinking automotive industry. Far too often it does not. The not only about next year or the next five years, but the automotive industrial strategy states: next 15, 20 or 30. That is why my hon. Friend the Member “The Automotive Council will…work with the financial services for Streatham chose the title Agenda 2030. It is five years industry to develop long-term investment finance products that this month since the Labour Government published meet the needs of the automotive industry”. “New Industry, New Jobs”, with an emphasis on activism Will the Minister update the House on progress with and targeted investment. A grant was provided to Nissan that? What has been the flow of finance to the automotive to support a new battery plant and the manufacture in supply chain, and what else will be done? the UK of the Nissan Leaf. The scrappage scheme I mentioned the potential to create tens of thousands helped maintain the industry at a time of acute falling of additional jobs, which brings me to the second pillar demand. More importantly, as we have heard today, the of Agenda 2030: skills. Every right hon. and hon. Automotive Council was set up to lay the foundations Member mentioned skills in their contribution, and for a long-term partnership between the industry and they are a massive issue in the automotive industry, and the Government and to build long-lasting capabilities in manufacturing in general. It will make or break the and create supportive policies for the automotive industry; potential of our country’s automotive industry in the it is something that we strongly support. We remain next 20 or 30 years. The automotive industrial strategy committed to the long-term continuation of the Automotive states that the pipeline for new entrants into the industry Council as the key institution for driving strategy,collaboration narrows too early, with too much leakage at important and innovation in the sector. As we have heard today, we points. In addition, I am struck that in several of the cannot achieve that without the pride, professionalism automotive industry’s bright spots, such as my region of and commitment of the industry’s work force. the north-east, as well as the west midlands, unemployment My right hon. Friend the Member for Oxford East is appallingly high. The unemployment rate in Birmingham, (Mr Smith) mentioned Cowley, and my hon. Friend the Erdington is the 53rd worst in the country and in Member for Birmingham, Erdington mentioned Jaguar Birmingham, Northfield it is the 59th worst. My hon. 225WH UK Automotive Industry1 APRIL 2014 UK Automotive Industry 226WH

Friend the Member for Birmingham, Erdington said Will the Minister address directly the point made by that one in four young people in his constituency are the head of Nissan late last year, when he said bluntly jobless. We need to marry up skills and potential with that the car maker may have to evaluate its UK operations the potential work force of the future. if Britain pulls out of the EU? Does that not concern My hon. Friend the Member for Inverclyde him? Has he seen the report on UK jobs supported by (Mr McKenzie) talked about the cost-of-living crisis. It exports to the EU published this week by the Centre for is more fundamental than simply prices versus wages; it Economics and Business Research, which shows that is about how our kids get decent jobs, a high standard 4.2 million jobs—particularly those in the north and in of living and a good career. A co-ordinated industrial the motor trade—are associated with the demand in strategy should link education policy and curriculum exports to the EU? It is vital that we remain part of the content with the automotive industry’s needs. Will the EU to ensure that manufacturers can base their operations Minister update the House on how the skills road map in the UK. for the sector is progressing? How will it improve skills I congratulate all hon. Members who have spoken and ensure there are more opportunities and fewer today. It is clear that the automotive industry is a vacancies in the industry? The strategy states that 7,600 massive success for British manufacturing. It is a great apprentices and 1,700 graduates will be recruited in the case study in how industry, the work force and the period 2013-18—the hon. Member for South Staffordshire Government can work together for the long term, with mentioned those numbers. How is that progressing? an emphasis on innovation, productivity, competitiveness What are the Government doing to promote better and exports. We cannot be complacent in the fiercely collaboration between firms in the industry to address competitive world in which we live. We must work the sector-wide problem of skills? together for the long term to maintain and strengthen The third pillar of Agenda 2030 is solving tomorrow’s the enviable comparative advantage of the automotive problems today, or the importance of innovation, which industry in the UK. I look forward to working with all my hon. Friend the Member for Inverclyde discussed in hon. Members to meet that challenge. his strong contribution. In a debate last month on the automotive industry in the other place, it was said that 3.39 pm the chief executive of Jaguar Land Rover expressed the The Minister of State, Department for Business, Innovation view that the most important thing to his company was and Skills (Michael Fallon): Thank you for the way you innovation. We have a lot of so-called “sticky”technologies have chaired the debate, Sir Alan, and for allowing me a and comparative strengths that we need to enhance. reasonably generous time to respond to the points that This country is particularly strong in designing, producing have been made. I congratulate my hon. Friend the and manufacturing engines. I am pleased to see the hon. Member for South Staffordshire (Gavin Williamson) on Member for Romsey and Southampton North (Caroline securing this debate on a subject about which he feels Nokes) in the Chamber. She mentioned Ford. It should passionately. He made an excellent speech, and I want be a source of enormous pride to us that one in three to echo his comments about the Jaguar Land Rover engines produced by Ford globally are produced in the decision to invest £500 million in a new engine plant in UK. We must continue to be strong in engine technology. his constituency. That is very welcome news indeed and Will the Minister tell us what progress is being made in will bring a massive boost to the area and the supply setting up the advanced propulsion centre? chain, creating some 1,400 jobs. I am pleased that JLR This morning, I met Air Products, a firm that is a is already making good progress in recruiting to fill leading player in the hydrogen industry. It is normally those positions. I am also pleased that the Government a business-to-business firm in the chemicals industry. are able to support that investment with a £10 million What is the Minister doing with the Automotive Council grant. to develop capability and infrastructure for hydrogen fuel cell technology in cars? How successful has the Various points were made by several hon. Members planned collaboration been between the Automotive in excellent speeches. I will touch on as many as I can in Council and the Engineering and Physical Sciences addressing the three themes that have emerged today: Research Council? Will the Minister update us on the the supply chain and the need to continue to strengthen work that the Automotive Council has done to identify it; skills and the need to continue to attract people, evolutionary and disruptive technologies that will have including women, into the industry; and what we are an impact on the UK automotive industry and which doing to advance our enormous strengths in innovation, could hinder progress or provide benefits to our comparative technology and design. advantage? Our economy is growing now, and the automotive The fourth pillar of Agenda 2030 is being outward- sector is contributing hugely to that growth. Last year, looking and open. It is clear from today’s debate that turnover in the automotive industry reached an all-time the House wants to encourage inward investment, so record, exceeding £60 billion, and was up 9% on the original equipment manufacturers and tier 1 and tier 2 previous year. We have overtaken France, and the UK is automotive manufacturers base their European operations now the third largest car producer in Europe, just in the UK. The domestic market is important, but that behind Germany and Spain, producing more than springboard to a European marketplace of half a billion 1.5 million vehicles in the UK in 2013. We have the most customers is the key selling point for reshoring and productive automotive workers in Europe. encouraging inward investment. As the my hon. Friend Last July, with the industry we set out a long-term the Member for Birmingham, Northfield said, internal strategy—some hon. Members today reinforced the need wrangling and navel gazing will not help potential for that strategy—for growth and sustainability for the investment into the UK. We may lose our competitive automotive sector in our automotive industrial strategy, edge if we do not address the policy certainty issue which will help to keep Britain at the forefront of the about European issues. global auto market. We are working closely with the 227WH UK Automotive Industry1 APRIL 2014 UK Automotive Industry 228WH

[Michael Fallon] are supporting a Society of Motor Manufacturers and Traders-led project with £13.4 million of funding to industry, through the Automotive Council and the strategy, help to improve the competitiveness and capability of to remove barriers to growth when we find them, and to 38 automotive supply chain companies. create opportunities across the sector. The sector is also benefiting from Government funding An excellent example is the co-operation between the worth more than £56 million for a total of nine AMSCI Government and industry on an advanced propulsion bids across four rounds of the competition. Between centre over the next 10 years and investment of £1 billion them, the projects aim to create more than 3,700 jobs from both the Government and the industry to help to and to safeguard a further 3,800 jobs. The Automotive research, develop and commercialise the next generation Council has identified a potential £3 billion of opportunities of low-carbon technologies, ensuring that the UK stays for UK-based vehicle and engine manufacturers, where at the forefront of the design, development, manufacture components are currently sourced from overseas. and use of ultra-low emission vehicles and in so doing The sector has also been successful in gaining funding helping to secure up to 30,000 jobs. from the regional growth fund, and has secured some The Automotive Council met last week to review £236 million in awards from that funding in rounds 1 to developments since the publication of the industrial 4. To marry the opportunity with investor appetite, the strategy last year. The advanced propulsion centre is automotive investment organisation, to which several progressing ahead of schedule with a senior team in hon. Members referred, aims to double the number of place and two funding competitions well under way, jobs created or secured in the automotive supply chain covering innovation and the centre’s location. The council through foreign direct investments over the next three heard that the first successful collaborative research and years to 15,000, and is currently on target to achieve development projects will be announced later this month that. It has had some early wins and has many investment with significant public support. A decision on the location opportunities in the pipeline. of the centre will be made by the executive in the The hon. Member for Inverclyde (Mr McKenzie) summer. asked about the supply chain and what I have been On the supply chain, the automotive investment doing to help to promote supply chain events. I have organisation reported good progress with early wins attended and spoken at events in London, Detroit and and numerous investment opportunities in the pipeline. Milan for suppliers in the Po valley, and I have done the On skills, the council noted a successful skills bid to the same in Tokyo and Nagoya, where tier 1 and 2 component advanced manufacturing supply chain initiative, and suppliers already have some interest in the UK. I have continuing progress on the industry employer ownership been working very hard with UK Trade and Investment, pilot bid. and now the automotive investment organisation, to persuade suppliers to increase their presence in the UK Richard Burden: Will the Minister clarify a couple of and to do more closer to the prime producers. points about the advanced propulsion centre, particularly the competition around the development of ultra-low Mr McKenzie: Does the Minister agree that encouraging emission vehicles? I understand that the budget for that a green supply chain would enable more manufacturers development is £500 million, but it is projected that to source in the UK, and to get round what is always only £230 million will be spent in this Parliament and put up as an excuse—the idea that EU procurement there is a question mark about whether any roll-over is legislation does not allow them to source as close to anticipated. Will he clarify exactly how much of that home as they would like? £500 million will be spent and how? Michael Fallon: I will certainly consider that and Michael Fallon: I am certainly happy to write to the draw it to the attention of the Automotive Investment hon. Gentleman about that. The Government have Organisation. It is an intriguing thought. We are obviously committed our side of the £500 million funding, but we working closely on procurement issues in preparing to cannot commit expenditure through and beyond the help manufacturers here with negotiations under the next Parliament. Perhaps the hon. Gentleman will allow transatlantic trade and investment partnership with the me to write to him about that specific point. United States, and we are looking at EU procurement Although there has been recent growth and expansion rules in that context. in the centre, and a lot of positive news, we should not We know that the industry has concerns about the become complacent. There is much more to be done to skills levels in the supply chain, and we share those ensure that the growth we have seen in recent years is concerns. To capitalise on the growth of the major sustainable, particularly in building the capability and manufacturers in the UK, we must tackle those skills capacity of the supply chain, and I will turn to that now. gaps, so that we can build a strong UK supplier network. My hon. Friend the Member for South Staffordshire We are providing significant support through the employer is right in saying that there is much more to do to ownership pilot. In the west midlands, for example, strengthen the supply chain. Currently, only about 40% £1 million will support the Telford manufacturing of the components of a UK-built vehicle come from a partnership, led by DENSO, in assisting in pre-employment UK supplier, so there is clearly an opportunity for us to activities and in upskilling employees. We are working capture more of the supply chain. Through the strategy with the industry through the Automotive Council to and the council, the Government and industry are ensure that we target the next phase of support where it working together to boost the competitiveness of the is most needed. UK’s supply chain growth. We are investing some Apprenticeships are at the heart of our approach to £129 million to strengthen advanced manufacturing improving work force skills. In 2012-13, we supported supply chains that will create around 1,400 jobs, and we over 66,000 apprenticeship starts in the engineering and 229WH UK Automotive Industry1 APRIL 2014 UK Automotive Industry 230WH manufacturing technologies sector subject area. Trailblazers to say that the latest version of the best-selling Qashqai are leading the way in implementing new apprenticeships has been designed and developed, and is being successfully and in helping to design the first apprenticeship standards. manufactured, here in the UK. Nissan is not alone in that. Ford invests some £450 million Heather Wheeler (South Derbyshire) (Con): Please each year in designing, developing and researching advanced accept my apologies, Sir Alan; I was detained on other gasoline and petrol engines for its global product range parliamentary business, so I arrived late for today’s at Dunton. Volkswagen spends £200 million each year debate. I apologise to the hon. Member for South at its engineering centre at Crewe, which, of course, Staffordshire (Gavin Williamson). Would the Minister designs the interior and exterior of Bentley cars. The like to congratulate Toyota, which is based in South scale of JLR’s research and development investment Derbyshire? It has taken on the challenge of expanding places it in the top 10 of all R and D investment in the its apprenticeship centre, so that it is producing apprentices UK. Some £2.75 billion was invested in 2013-14. for the supply chain as well. It is over-extra-supplying in Let me turn to points that have been raised. The hon. the apprenticeship area, and that is very important for Member for Birmingham, Northfield (Richard Burden), the future. asked me about Dunlop. We have been working closely with Dunlop to see what we can do in Government to Michael Fallon: Yes. That is a very important approach, secure a better outcome for all parties concerned, and I hope that it will be copied more widely. particularly the Dunlop workers, given the expiry of the The Trailblazer group is chaired by Ian Eva, the lease next year. The company met the Secretary of State apprenticeship manager from Jaguar Land Rover, with for Business, Innovation and Skills recently. There have the involvement of a number of other companies, including also been key meetings at official level. We continue to Toyota and BMW. Traineeships are another key strand offer our full support to Dunlop. The company has of our strategy to help unlock the potential of young acknowledged that offer of support and will contact people who are motivated to work but lack the skills officials once the consultation has concluded. and experience needed to compete for apprenticeships The hon. Gentleman also asked me about the regional and other jobs. Hundreds of employers are already on growth fund, which I have referred to. It is true that in board, including household names in the automotive the first couple of rounds of the regional growth fund, a sector, such as Jaguar Land Rover and Nissan. proper time scale was not in place. I put that in place for round 3. It is in place for round 4, and it will shortly be Mr Andrew Smith: On apprenticeships, although progress put in place when we announce the award winners for is of course welcome, will the Minister respond to my round 5, so I think we have a more systematic process point about the need for a standard automotive framework for looking at the allocations. for apprenticeships with a high level of quality assurance? The hon. Member for Inverclyde asked me specifically what we were doing to make sure that all this growth Michael Fallon: Yes, I will. We need to drive up the was more evenly spread throughout the United Kingdom. quality of apprenticeships, and that is part of what is It is fairly spread, certainly across England. I recognise called the Trailblazer exercise. Those involved will help the decline of some elements of the Scottish car industry. to draw up the standards, and ensure that there is a Industrial policy, of course, is a devolved matter, so the rigorous test at the end of the apprenticeship and that instruments at our command here—the regional growth we improve the quality of what is on offer. fund and AMSCI—are not available in Scotland. It has I turn to what we are doing to support innovation its own separate instruments, but companies from all over and technology. Our aspiration is for almost every car the United Kingdom are represented on the Automotive and van in the UK fleet to be an ultra-low emission Council, and we work closely through UK Trade & vehicle by 2050, with our industry at the forefront of the Investment with counterparts in Scotland. design, development, manufacture and use of those The hon. Member for Hartlepool (Mr Wright) asked vehicles, delivering opportunities and contributing to me about a number of points. He referred to the partnership the decarbonisation of road transport. We have made a with the unions. I, too, would like to place on record the commitment of £400 million over this Parliament to important part that unions have played in the revival of making the UK a leading market for ultra-low carbon our automotive industry. We saw that in emphatic fashion vehicles, and we announced an additional £500 million in the negotiations over Ellesmere Port; it was the of capital funding for the period between 2015 and constructive partnership—the agreement on more flexible 2020. working practices—that made it able to win investment To ensure that we maintain our position at the forefront in the face of a competing bid for Germany. I remind of that technology, as I have said, we have already hon. Members that Unite is represented on the Automotive agreed the investment in the Advanced Propulsion Centre, Council. It is right that it has its place there, and I, too, and we are supporting further innovation, research and pay tribute the constructive way in which it has worked development through an £82 million investment up to on a number of the changes that have taken place in the 2015 from the Office for Low Emission Vehicles through industry. the Technology Strategy Board. The hon. Gentleman asked me about the supply As my hon. Friend the Member for South Staffordshire chain, but I think I have answered questions about the said, we have great automotive design capacity in this efforts that we are making to improve supply chain country. Nissan has a cutting-edge European design capabilities right across the world. centre based in Paddington—London, of course, is one Finally, let me say that the United Kingdom is now of the creative hubs of the world—but with its sister a competitive place to do business. When we came to Nissan technology centre at Cranfield and the largest office back in 2010, the rate of corporation tax was single production plant at Sunderland, we can be proud 28%. Yesterday it was 23%, today it is 21%, and next 231WH UK Automotive Industry1 APRIL 2014 UK Automotive Industry 232WH

[Michael Fallon] The debate has shown that, as I said at the start, we are all passionate about this industry, and we all have a April it will be 20%. Our labour costs are already clear idea of some of the challenges to it. I have a great among the lowest in western Europe. We have an attractive feeling that there is an immense amount of consensus research and development tax credit regime and the on making sure that the industry thrives in future, so patent box. All those combine to make this country an that instead of being the third largest car manufacturer attractive location for innovative industries such as the in Europe, we will be the largest, hopefully in the automotive sector. With the automotive sector investing not-too-distant future. over £2.5 billion in our country last year, it is very clear that vehicle makers value the UK as one of the best places in the world to do business. Through the Automotive 3.59 pm Council, the Government are working in close partnership with automotive companies to continue to improve the Sitting suspended. overall competitiveness of the business environment, both domestically and internationally. 4.30 pm Sir Alan Meale (in the Chair): Mr Williamson, we Sir Alan Meale (in the Chair): It does not seem as if have about one minute left. That gives you the opportunity the Member has arrived for the next debate, so I shall to thank Members on both sides of the Chamber and adjourn the sitting. the Minister for their participation, but there is no time for questions. Question put and agreed to. 3.58 pm Gavin Williamson: Thank you, Sir Alan. It is always a 4.31 pm pleasure to speak again and to thank everyone, as you so kindly prompted me to, for their contributions. Sitting adjourned. 73WS Written Statements1 APRIL 2014 Written Statements 74WS

Corporate Priorities 2014-15 Written Statements Goals Priorities

Tuesday 1 April 2014 2 Delivering high-quality Modernising our technological rights granting services infrastructure Digital by Default —enhancing our digital service BUSINESS, INNOVATION AND SKILLS Helping UK companies which are IP rich trade more Intellectual Property Office internationally Working with UK and international enforcement The Parliamentary Under-Secretary of State for Business, agencies to help reduce the flow Innovation and Skills (Jenny Willott): My noble Friend of counterfeit goods into the UK the Parliamentary Under-Secretary of State for Business, 3 Enabling business to Supporting operational IP Innovation and Skills, Viscount Younger, has today understand, use and enforcement activities alongside made the following statement: protect their IP and our partners, including the Police educating consumers to Intellectual Property Crime Unit As an Executive agency and trading fund of the Department respect others’ IP rights and Trading Standards for Business, Innovation and Skills, we set targets which are Delivering an international agreed by Ministers and laid before Parliament. For 2014-15 our enforcement summit targets are: Facilitating the use of IP as a Deliver the infrastructure and supporting regulations required financial asset for the UK’s orphan works and extended collective licensing schemes by the end of the year; Delivering a suite of tools to encourage university lecturers to Offer faster handling of patent applications, by providing an bring IP into course material and examination report with a search report when both are to build students understanding requested at the application date, and meeting at least 90% of IP of requests for an accelerated two-month turnaround for search, publication and examination; Developing effective leaders, Publish 80% of acceptable applications for national trade managers and change managers marks for opposition within 90 days of filing: 4 Improving the skills and Implementing a new total reward Ensure customer satisfaction is at least 80%; capacity of our people package With our partners, the Office for Harmonization in the Continuing to embed Lean into Internal Market (OHIM) and the European Commission, our culture deliver an international enforcement summit that provides an effective forum for the discussion and debate of intellectual property (IP) enforcement globally, and attracts an international Implementing corporate shared audience, by summer 2014; services Reach an audience of 5 million people with messages to 5 Increasing efficiency and Delivering better buying build respect for IP by the end of March 2015; delivering value for money Reach an audience of 10,000 businesses through our online tool “IP for Business” by the end of March 2015; Developing simpler ways of working Ensure 95% of our managers have completed a management development activity by the end of March 2015; Achieve a 4% return on capital employed (ROCE); Deliver an efficiency gain of 3.5%. COMMUNITIES AND LOCAL GOVERNMENT These targets reflect the purpose of the Intellectual Property Office, which is to promote innovation by providing a clear, accessible and widely understood IP system. Business Rates Corporate Priorities 2014-15 Goals Priorities

Improving licensing by delivering TheParliamentaryUnder-Secretaryof StateforCommunities the Orphan Works and Extended and Local Government (Brandon Lewis): As part of the Collective Licensing Schemes by Government’s long-term economic plan, the biggest the end of the year package of business rate support in over 20 years, announced Modernising the designs framework in the autumn statement, goes live today. This package 1 Promoting UK growth Pursuing preparations for of measures will make a massive difference for small through IP policy ratification and implementation shop owners and help businesses and the high streets of the Unitary Patent and across the country build a stronger economy. Unified Patent Court Agreement Reforming EU Trade Mark law The package includes: a new £1,000 business rates discount for small shops, restaurants Influencing continuing EU and pubs for 2014-15 and 2015-16; debate on the future copyright framework for Europe in line a further extension of small business rate relief; with UK interests a new reoccupation relief to help get empty shops back into Delivering Global Patent Reform use; the opportunity for firms to choose to pay bills over 12 month Modernising our patents service instalments to help them with their cash flow; and capping the annual indexation at 2% this year. 75WS Written Statements1 APRIL 2014 Written Statements 76WS

I have today placed in the Library of the House We received 162 responses to the consultation from a estimates that each individual local authority has made range of stakeholders including the judiciary, legal of the number of retail premises, pubs and restaurants representative bodies, voluntary organisations, business that will benefit from the new £1,000 business rates representatives, and members of the public. discount. Overall, councils estimate that they will provide Having carefully considered the views of stakeholders, more than £272 million of retail relief in 2014-15. the paper published today sets out the proposals we The £1,000 discount applies to eligible businesses intend to take forward in response to the cost recovery with a rateable value of £50,000 or less, and is being proposals in part one of the consultation. The Government delivered by local billing authorities using their Localism will announce their response to enhanced charging Act powers to provide new local discounts. In this case, proposals in part two of the consultation to this House the entire cost will be met by central Government. in due course. Local authorities are locally determining eligibility, given The changes set out in the consultation response will the diversity of different types of retail hereditament. see fees rise for some court users so that they will pay My Department published on 29 January guidance to the full cost of the service they receive, reducing the assist local authorities in ensuring that eligible local taxpayer subsidy for those able to afford higher fees and firms receive the support they deserve. A copy of that ensuring that in cases such as judicial review, those guidance is also in the Library of the House. bringing claims have a more proportionate share in the I have also today published guidance to assist authorities financial risks of the proceedings. in their administration of the new reoccupation relief. In building the package of changes, the Government Ratepayers that move into retail premises that have have sought to continue to protect the most vulnerable been empty for 12 months or more will be eligible for court users. Those with limited financial means will be an 18-month 50% discount off their rates bill. This able to access a system of fee remissions to ensure that reoccupation relief is intended to encourage reoccupation they are not denied access to the courts. In addition, the of shops that have been empty for a long period of time scrapping of the £75 application fee for domestic violence and to reward businesses that make this happen. Businesses injunctions will help thousands of women seeking non- moving into previously empty retail premises between molestation and occupation orders, while the decision 1 April 2014 and 31 March 2016 should be eligible for to freeze many fees in family applications at current this relief A copy of the guidance to authorities is also levels will assist those who need to access the courts to in the Library of the House. resolve difficult family issues. I would encourage hon. Members to draw these The Government will be laying the relevant statutory measures to the attention of local firms and shops, and instruments to implement most of the changes announced ensure that all eligible firms are benefiting from the in the consultation response today and the changes will range of financial assistance open to them. take effect on 22 April 2014. Copies of the consultation response will be available in the Vote Office and the Printed Paper Office. An online version of this consultation paper will be JUSTICE available at: https://consult.justice.gov.uk/digital-communications/ court-fees-proposals-for-reform Civil Court System (Fees) .

The Parliamentary Under-Secretary of State for Justice Parole Board Rules (Mr Shailesh Vara): I have today laid and published the Government’s response to part one of the consultation “Court Fees, Proposals for Reform” which ran from The Parliamentary Under-Secretary of State for Justice 3 December 2013 to 21 January 2014. (Jeremy Wright): My right hon. and learned Friend the For many years, the civil court system has operated Minister of State for Justice, Lord Faulks, has made the under the principle that those who use the courts should following written ministerial statement: pay the full cost of the service they receive. However, I have signed the Parole Board (Amendment) Rules 2014 this has not yet been achieved in practice and, last year, Order which amends the Parole Board Rules 2011 to remove the deficit was more than £100 million. At a time when the requirement that a judge should sit on and chair Parole Board oral panels hearing the cases of prisoners sentenced we have made deficit reduction our top priority, the to life imprisonment or a sentence during Her Majesty’s Government do not believe that the courts can be pleasure. As a consequence, the chairman of the Parole immune from the tough decisions we have had to take in Board will be able to appoint any member, including sitting order to bring public spending in line with what we can or retired judges, to sit on or chair such panels. afford. This approach will enable the Parole Board to adopt a It was within this context that the consultation outlined flexible approach in assessing which of its members are best the Government’s approach to reducing the cost of the able to sit on and chair oral panels involving life sentence court system to the taxpayer in two parts. The first part prisoners. Oral hearing panels, which do not include sitting or retired judges, already consider determinate cases and “Cost recovery” set out proposals to align court fees cases involving sentences of imprisonment for public protection with the cost of the service provided, to move closer to (IPP). These cases can be just as difficult and complex as the our long-term goal of cost recovery through fees. The cases of life sentenced prisoners. second part “Enhanced charging” set out proposals to The Parole Board already assesses non-judicial members charge users of some court services more than their as to whether they possess sufficient skills and experience to cost, where they can afford to do so. be effective in chairing IPP cases. Following the amendment 77WS Written Statements1 APRIL 2014 Written Statements 78WS

of the 2011 rules, the process of assessment and additional while minimising the impact on the aviation community, training will be extended to all members in respect of serving so far as possible. However, the Government reserve the on and chairing life sentence panels. right to implement additional airspace security measures This Government regard the protection of the public as a should the need arise. priority and this change will help us create a more effective and efficient criminal justice system and will allow greater flexibility, given the demands on a sitting judge’s time. HGV Road User Levy

TRANSPORT The Secretary of State for Transport (Mr Patrick McLoughlin): For the benefit of Members of the House, Airspace Restrictions (Glasgow Commonwealth Games) I am pleased to announce that from 00:00 this morning, all HGVs at or above 12 tonnes using UK roads have The Parliamentary Under-Secretary of State for Transport been required to pay a new time-based road user charge, (Mr Robert Goodwill): The 20th Commonwealth games the HGV road user levy. The introduction of the levy is are due to take place in Glasgow this summer. While a coalition Government commitment, and following overall responsibility for the security of the games rests the introduction of the HGV Road User Levy Bill in with Police Scotland, aviation is a matter reserved to the October 2012, has been delivered nearly a year ahead of UK Parliament under devolution legislation. Police Scotland schedule. has, therefore, requested that the Government develop a The introduction of such a measure in the UK has set of temporary airspace restrictions from 13 July to been called for over many years by our domestic haulage 6 August to help protect the games venues from potential industry. The levy must be paid by foreign-registered airborne risks. and UK-registered HGVs alike, and creates a fairer Initial proposals were developed during the autumn system by removing some of the inequality UK hauliers of last year, based on a scaled-down version of the feel when paying to use many roads abroad. The model used successfully during the London 2012 Olympic introduction of the levy ensures all HGVs make a games. Police Scotland, working with colleagues from contribution to the costs of UK road maintenance, the Civil Aviation Authority (CAA), has subsequently irrespective of their country of origin. engaged extensively with aviation representatives from The levy is structured in a series of bands to reflect the airports located within the proposed airspace restrictions vehicle type, maximum weight and axle configuration, to test the proposals and to develop mitigations to with heavier, more road wearing HGVs paying the minimise the impact on business as usual. most. For a given vehicle type, the annual rates of levy As a result of that engagement work the Government, and six-month rate of levy are the same for foreign and with the assistance of the CAA, refined their proposals UK-registered HGVs. and have now prepared the necessary statutory instruments The vast majority of UK hauliers will notice no to give effect to the temporary airspace restrictions that difference. For over nine out of 10 UK-registered HGVs, will be put in place for the Commonwealth games. the cost of the levy will be fully offset by reductions in NATS, the UK’s en route air traffic service provider and vehicle excise duty (VED). The levy will be paid alongside publisher of the UK’s aeronautical information, will be VED in a single transaction so that unnecessary publishing the details of these regulations on 17 April administration costs are not incurred. 2014 in a number of aeronautical information circulars. Foreign HGVs must pay the levy before they use UK In addition, full details of the planned airspace restrictions, roads and can purchase for between a day and a year, including maps, will be published on the airspace safety with discounts available for longer periods. The introduction initiative website at www.airspacesafety.com of the levy is one of a number of initiatives designed to In total there are six sets of regulations, two covering help the haulage industry. We have introduced a trial of the Glasgow area (a core prohibited zone over the city’s longer semi-trailers. We are spending £6 billion on Commonwealth games venues and athletes’ village, maintaining motorway and trunk roads between 2015-16 surrounded by a larger restricted zone), and four smaller and 2020-21 and providing over 500 miles of additional restrictions of shorter duration, protecting specific events— lane capacity to the strategic road network. the cycling time trials at Muirhead, the triathlon events Duty on standard diesel is now lower than it was in at Strathdyde country park, the diving competition at October 2010. VED on HGVs has remained frozen the Royal Commonwealth pool in Edinburgh and the during this Parliament and we have announced a decade’s shooting competition at the Barry Buddon range near worth of lower levels of duty for methane gas fuelled Dundee. HGVs. The introduction of the levy is expected to bring All the regulations have been designed to allow aviation in circa £20 million in taxation revenue and could lead business to continue as usual so far as possible, while to economic benefits through international haulage market ensuring the safety and security of the Commonwealth share increases. games. They also provide specific exemptions for aircraft For ease of use, foreign operators making regular such as those operated by the police or emergency visits to the UK have been encouraged to pay online medical services to enter the protected airspace. We do using registered accounts on gov.uk. Infrequent visitors not expect that any airports within the restricted airspace to the UK can chose to “pay and go” and can make will need to close as a result of the planned measures, purchases online, at some point of sale facilities or by and there should be no impact on scheduled air services phone. that will be vital to competitors, officials and spectators. Non-payment of the levy is a criminal offence. The The Government’s paramount objective is the delivery offence will generally be dealt with at the roadside via a of a safe and secure 2014 Commonwealth games for all, fixed penalty notice of £300. On summary conviction a and the airspace restrictions will help to provide this fine of up to level 5 on the standard scale—currently 79WS Written Statements1 APRIL 2014 Written Statements 80WS

£5,000—will be payable for non-compliance. The Driver created as the new independent statutory regulator of and Vehicle Standards Agency (DVSA) are leading on the nuclear sector. This follows my signing of an Order levy enforcement in Great Britain, and the Driver and under part 3 of the Energy Act 2013 for this purpose. Vehicle Agency (DVA) in Northern Ireland. Both agencies The ONR will operate as a public corporation. intend to enforce the levy through a combination of The new ONR is responsible for the regulation of additional targeted stops and as part of existing road nuclear safety, nuclear site health and safety, nuclear safety related stops. The police also have enforcement security, nuclear safeguards and the transport of radioactive powers. material. As a public corporation outside of Government, the new regulator has increased agility to address the regulatory WORK AND PENSIONS demands of an expanding nuclear industry, holding it to account on behalf of the public. Office for Nuclear Regulation The Government announced plans in February 2011 for primary legislation to create this new regulatory body. The Energy Act 2013, which received Royal Assent The Minister of State, Department for Work and in December last year, and its associated secondary Pensions (Mike Penning): Today, I am announcing that legislation, provides the statutory basis for the new the Office for Nuclear Regulation (ONR) has been body’s operations. 7P Petitions1 APRIL 2014 Petitions 8P

The Secretary of State for the Department for Petition Communities and Local Government is aware that Cleveland had a 2.2% spending power reduction in Tuesday 1 April 2014 2012-13 and a 5.% spending power reduction in 2013/14 —both low in the current fiscal climate and given the need to pay off the deficit left by the last Administration. OBSERVATIONS Data on fires and false alarms (rather than “fire calls”) in Cleveland are only available for the first six months of 2013-14. Cleveland Fire and Rescue Authority recorded COMMUNITIES AND LOCAL GOVERNMENT 3,932 fires and false alarms during this period, an increase of 34% from the same period in 2012-13 (2,936). Fire Services in the Cleveland Fire Authority area There were, however, fewer fires and false alarms recorded (Middlesbrough South and East Cleveland) in 2013-14 than in the same period in each of three years prior to 2012-13. The significantly lower number The Petition of residents of the UK, in 2012-13 is likely to be due to the wet summer of 2012. Declares that the Petitioners believe that it is unfair Fire and rescue authorities are best placed to assess that the Department for Communities and Local and manage their services and do this through the Government have imposed large funding reductions on integrated risk management planning process. Fire and a high-risk area like Cleveland when lower-risk areas in rescue authorities now attend 46% fewer incidents than the South of England have had their central funding 10 years ago and they allocate their resources according increased; further that the Petitioners believe that funding to local risk. Fire safety is at an all-time high, but reductions have contributed to the 54.1% increase in overall fire fighter strength over the same period has total fire calls in Cleveland between 2012-13 and 2013-14; only dropped by 9%. Decisions on allocation of their further that the Petitioners believe that it is unacceptable resources are taken by fire and rescue authorities like that the Authority’s proposed Integrated Risk Management Cleveland through the integrated risk management planning Plan recommends the closure of Marine Fire Station process after effective consultation with the local and the reduction by approximately 25% of the number community—there is no role for central Government to of the whole-time firefighters; further that the Authority intervene in such decision-making. Decisions on operational and Government should take steps to protect frontline matters such as station closures and firefighter numbers services and further that a local Petition on this issue are, therefore, for Cleveland fire and rescue authority. has received over 6,000 signatures across Redcar and Overall the 2014-15 finance settlement provides fair Cleveland, Middlesbrough, Stockton-on-Tees and funding for all authorities whether rural or urban, Hartlepool. north or south. In 2013-14 protections were built in for The Petitioners therefore request that the House of the most grant dependent authorities taking account of Commons urges the Department for Communities and risk and deprivation through the relative needs element, Local Government to provide a fairer funding settlement so that authorities facing the highest demand for services that gives due consideration to deprivation and risk, continue to receive substantially more funding through further that the House of Commons urges the Government the settlement (i.e. in their allocation of revenue support to encourage Cleveland Fire Authority to reallocate grant and the baseline for retained business rates, which planned capital expenditure to the preservation of frontline is known as the settlement funding assessment). services, and further that the House of Commons urges Spending power of authorities in the most deprived the Cabinet Office, Department for Communities and areas is much higher—in 2014-15 up to around £4200 Local Government and Cleveland Fire Authority not to per dwelling in the 10% most deprived authority areas further expend on unwanted and high-risk proposals to compared to up around £2100 per dwelling in the 10% spin out fire brigades as public service mutuals. least deprived authority areas. Cleveland’s Spending And the Petitioners remain, etc.—[Presented by Tom Power per dwelling is the highest amongst single-tier Blenkinsop, Official Report, 26 February 2014; Vol. 576, fire authorities at £115, compared to, for example, c. 378.] Berkshire at £95, Hampshire at £89 or Kent at £94. [P001321] We are giving fire and rescue authorities the stability Observations from the Secretary of State for Communities to reform local services for their communities and to and Local Government: make long-term savings. The Knight Review “Facing Fire and rescue authorities deliver an incredibly important the Future”, found huge variations in the way fire and service for local communities and are continuing to play rescue authorities operated and concluded that there their part, along with other parts of local government, were significant opportunities for savings. This is why in cutting the deficit. Single-purpose fire and rescue Government are making available a £75 million authorities (outside London) will receive £1.46 billion transformation fund for fire and rescue authorities in of revenue spending power under the 2014-15 settlement, 2015-16. of which approximately £0.74 billion is revenue support There is still scope for fire and rescue authorities to grant and business rates baseline, with further substantive make sensible savings, such as through reforms to flexible funding to be supplied through council tax. Cleveland staffing and crewing arrangements, better procurement; Fire and Rescue Authority’s Spending Power for 2014-15 shared services, collaboration with emergency services is £28.6 million. They will also receive £193,000 to and other organisations on service delivery and estates, support national resilience and £2.74 million of capital sickness management; sharing of senior staff, locally-led grant. Cleveland Fire’s reserves out-turn at the end of mergers and operational collaborations, new fire-fighting 2012-13 was £10.8 million—their reserves have more technology, preventive approaches and working with than doubled since 2009 (CIPFA data). local businesses. 9P Petitions1 APRIL 2014 Petitions 10P

The Government will make no moves on mutualisation such as through locally-led mutuals, and we keep under that would lead to privatisation. We continue to support consideration the best way to do this within the legal fire and rescue authorities in exploring new and innovative framework. ways of delivering their services to their communities, 549W Written Answers1 APRIL 2014 Written Answers 550W

the Government has made of the likely change in the number of Written Answers to people in the UK who will be aged 90 years and over between 2012 and 2023. [194120] Estimates of future population are available as population Questions projections. The most recent national population projections are based on mid-year population estimates for 2012 published in 2013. They project the number of persons aged 90 and over in the Tuesday 1 April 2014 United Kingdom to increase by 311,000, from 513,000 in mid-2012 to 824,000 by mid 2023. National population projections are not forecasts and do not attempt to predict the impact of future government policies, CABINET OFFICE changing economic circumstances or the capacity of an area to accommodate a change in population. They provide an indication of the future size and age structure of the population if recent Electoral Register demographic trends continued.

Chris Ruane: To ask the Minister for the Cabinet Rents: Greater London Office pursuant to the answer of 25 November 2013, Official Report, columns 80-1W, on Electoral Register, Fiona Mactaggart: To ask the Minister for the if his Department will use information gathered on the Cabinet Office if he will request that the Office for amount spent by local authorities on voter registration National Statistics publishes the evidential basis for the to inform policy on registration levels. [193857] comment by the Minister for Housing of 3 March 2014, Official Report, column 606, on changes in rents Greg Clark: The Government do not hold information in London. [194170] on the amounts spent by local authorities on electoral registration. Mr Hurd: The information requested falls within the responsibility of the UK Statistics Authority. I have the Employment: Brigg asked the authority to reply. Letter from Joe Grice, dated March 2014: Andrew Percy: To ask the Minister for the Cabinet On behalf of the Director General for the Office for National Office how many disabled people were in paid work in Statistics (ONS), I have been asked to reply to your Parliamentary Brigg and Goole constituency in each of the last five Question asking the Minister for the Cabinet Office if the ONS years. [194258] will publish the evidential basis for the comment by the Minister for Housing of 3 March 2014, Official Report, column 606, on Mr Hurd: The information requested falls within the changes in rents in London (194170). responsibility of the UK Statistics Authority. I have ONS publishes the experimental Index of Private Housing asked the authority to reply. Rental Prices (IPHRP), which tracks the changes in the price Letter from Joe Grice, dated March 2014: charged for renting private housing. The IPHRP excludes properties rented by housing associations and local authorities, and any On behalf of the Director General for the Office for National other forms of social housing. The IPHRP measures the change Statistics (ONS), I have been asked to reply to your recent in the price of renting residential property from private landlords, Parliamentary Question asking the Minister for the Cabinet thereby allowing a comparison between the prices tenants are Office how many disabled people were in paid work in Brigg and charged in the current month compared with the same month in Goole constituency in each of the last five years. (194258) the previous year. The index does not measure the change in The ONS compiles employment statistics for local areas from advertised rental prices. the Annual Population Survey (APS) following International The available information is provided in the table for the Labour Organisation (ILO) definitions. However, estimates of the period January 2011 to December 2013. number of disabled people in employment in Brigg and Goole constituency are not available due to small sample sizes. Experimental index of private housing rental prices, percentage change over 12 months National and local area estimates for many labour market Not seasonally adjusted statistics, including employment, unemployment and claimant count are available on the NOMIS website at Countries http://www.nomisweb.co.uk Great Britain England Wales Scotland Older People Percentage change on a year earlier Mr Gregory Campbell: To ask the Minister for the 2011 Jan — 0.3 0.3 — Cabinet Office what estimate the Government has Feb — 0.4 0.3 — made of the likely change in the number of people in Mar — 0.5 0.4 — the UK who will be aged 90 years and over between Apr — 0.6 0.4 — 2012 and 2023. [194120] May — 0.8 0.5 — Jun — 0.9 0.5 — Mr Hurd: The information requested falls within the responsibility of the UK Statistics Authority. I have Jul — 1.0 0.7 — asked the authority to reply. Aug — 1.1 0.6 — Letter from Caron Walker, dated March 2014: Sep — 1.2 0.6 — On behalf of the Director General for the Office for National Oct — 1.2 0.7 — Statistics I have been asked to reply to your recent Parliamentary Nov — 1.3 0.8 — Question asking the Minister for the Cabinet Office what estimate 551W Written Answers1 APRIL 2014 Written Answers 552W

Experimental index of private housing rental prices, percentage change Experimental index of private housing rental prices, percentage change over 12 months over 12 months Not seasonally adjusted Not seasonally adjusted Countries Countries Great Great Britain England Wales Scotland Britain England Wales Scotland Dec — 1.3 0.8 — 2013 Jan 1.4 1.5 1.0 0.4 2012 Jan 1.4 1.4 0.7 1.3 Feb 1.4 1.4 1.1 0.5 Feb 1.4 1.4 0.8 1.3 Mar 1.3 1.4 1.2 0.6 Mar 1.4 1.4 0.7 1.2 Apr 1.3 1.3 1.4 0.8 Apr 1.4 1.5 0.8 1.2 May 1.3 1.3 1.5 1.0 May 1.4 1.5 0.7 1.2 Jun 1.2 1.2 1.5 1.2 Jun 1.4 1.5 0.8 1.1 Jul 1.2 1.2 1.4 1.2 Jul 1.4 1.5 0.6 1.0 Aug 1.4 1.5 0.7 0.8 Aug 1.2 1.1 1.3 1.3 Sep 1.4 1.5 0.8 0.5 Sep 1.2 1.1 1.2 1.4 Oct 1.4 1.5 0.8 0.4 Oct 1.1 1.1 1.2 1.4 Nov 1.4 1.5 0.7 0.3 Nov 1.1 1.0 1.2 1.3 Dec 1.4 1.5 0.8 0.4 Dec 1.0 1.0 1.2 1.3

Not seasonally adjusted Regions Yorkshire North North and the East West South South East West Humber Midlands Midlands East London East West GB1 England1

Percentage change on a year earlier 2011 Jan 0.1 0.4 0.4 -0.1 0.3 0.2 0.4 0.4 0.1 — 0.3 Feb 0.2 0.4 0.4 0.0 0.3 0.2 0.5 0.5 0.2 — 0.3 Mar 0.2 0.4 0.5 0.1 0.3 0.3 0.6 0.6 0.3 — 0.4 Apr 0.3 0.5 0.5 0.2 0.4 0.4 0.8 0.7 0.4 — 0.5 May 0.4 0.6 0.5 0.3 0.5 0.6 1.0 0.9 0.5 — 0.6 Jun 0.4 0.6 0.5 0.4 0.6 0.6 1.2 1.1 0.6 — 0.7 Jul 0.4 0.7 0.6 0.5 0.6 0.7 1.5 1.1 0.7 — 0.8 Aug 0.4 0.7 0.6 0.6 0.7 0.8 1.7 1.1 0.8 — 0.8 Sep 0.4 0.7 0.7 0.6 0.6 0.8 1.8 1.2 0.7 — 0.8 Oct 0.4 0.7 0.7 0.7 0.7 0.9 1.9 1.3 0.8 — 0.9 Nov 0.4 0.7 0.5 0.7 0.7 1.0 2.0 1.4 0.9 — 0.9 Dec 0.3 0.7 0.6 0.7 0.7 1.0 2.1 1.4 0.9 — 0.9

2012 Jan 0.3 0.8 0.7 0.7 0.7 1.0 2.2 1.5 0.9 1.0 1.0 Feb 0.2 0.8 0.6 0.8 0.7 1.1 2.2 1.5 0.9 1.0 1.0 Mar 0.2 0.8 0.7 0.8 0.8 1.1 2.3 1.5 0.9 1.0 1.0 Apr 0.1 0.7 0.7 0.8 0.8 1.1 2.3 1.5 0.9 1.0 1.0 May 0.1 0.7 0.6 0.8 0.7 1.0 2.4 1.4 0.9 1.0 1.0 Jun 0.1 0.7 0.6 0.8 0.8 1.0 2.4 1.4 0.9 1.0 0.9 Jul 0.0 0.7 0.6 0.7 0.8 1.1 2.4 1.4 0.9 0.9 0.9 Aug 0.0 0.7 0.7 0.7 0.7 1.1 2.4 1.4 0.8 0.9 0.9 Sep -0.1 0.6 0.6 0.8 0.7 1.0 2.4 1.4 0.9 0.9 0.9 Oct -0.1 0.6 0.7 0.8 0.7 1.0 2.5 1.4 0.9 0.9 0.9 Nov -0.1 0.5 0.7 0.8 0.7 1.0 2.5 1.3 0.9 0.8 0.9 Dec -0.1 0.5 0.7 0.8 0.6 1.0 2.5 1.4 0.9 0.9 0.9

2013 Jan -0.1 0.5 0.7 0.7 0.6 1.0 2.5 1.3 0.9 0.8 0.9 Feb -0.1 0.5 0.7 0.7 0.6 0.9 2.4 1.3 0.9 0.8 0.8 Mar -0.1 0.5 0.7 0.7 0.6 0.9 2.3 1.3 0.9 0.8 0.8 553W Written Answers1 APRIL 2014 Written Answers 554W

Not seasonally adjusted Regions Yorkshire North North and the East West South South East West Humber Midlands Midlands East London East West GB1 England1

Apr -0.1 0.4 0.7 0.7 0.6 0.9 2.3 1.2 0.9 0.8 0.8 May -0.1 0.4 0.7 0.6 0.6 0.8 2.2 1.2 0.9 0.8 0.8 Jun 0.0 0.4 0.6 0.6 0.5 0.8 2.1 1.1 0.9 0.8 0.8 Jul 0.1 0.4 0.6 0.6 0.5 0.7 1.9 1.1 0.9 0.8 0.7 Aug 0.1 0.3 0.6 0.6 0.5 0.8 1.9 1.1 0.9 0.8 0.7 Sep 0.1 0.4 0.5 0.5 0.5 0.8 1.8 1.1 1.0 0.8 0.7 Oct 0.2 0.4 0.5 0.5 0.4 0.8 1.7 1.1 0.9 0.8 0.7 Nov 0.2 0.4 0.5 0.5 0.4 0.7 1.6 1.1 0.9 0.8 0.7 Dec 0.2 0.3 0.4 0.5 0.4 0.7 1.6 1.0 0.9 0.8 0.7 1 Excluding London Source: Office for National Statistics.

COMMUNITIES AND LOCAL GOVERNMENT census figures will include persons who are not eligible Housing: Carbon Emissions to register to vote, for example on grounds of citizenship or age. Cathy Jamieson: To ask the Secretary of State for Devolution and Decentralisation Communities and Local Government when he will publish the Government’s response to the consultation Andrew Rosindell: To ask the Deputy Prime Minister on its commitment to implement zero carbon homes by What recent discussions he has had with ministerial 2016. [193636] colleagues about the Government’s policy on devolution Stephen Williams: The Government is currently and decentralisation. [193672] considering the responses to the consultation on “Next steps to zero carbon homes—Allowable Solutions” and The Deputy Prime Minister: I meet regularly with will publish its response shortly. ministerial colleagues to discuss this Government’s policy of decentralising responsibility to the most appropriate Land: Contamination levels.

Joan Walley: To ask the Secretary of State for Electoral Register Communities and Local Government pursuant to the answer of 28 January 2014, Official Report, column Chris Ruane: To ask the Deputy Prime Minister 476W, on land: contamination, what proportion of the pursuant to the answer of 24 January 2013, Official revenue support grant arises from a calculation of the Report, column 392W, on the electoral register if he cost to local authorities of fulfilling their duties under will place in the Library a copy of the guidelines for the part 2A of the Environmental Protection Act 1990. issuing of fixed penalty notices for non-registration. [193553] [193800]

Brandon Lewis: Revenue support grant is not ring-fenced. Greg Clark: Guidance from the Electoral Commission It is an unhypothecated block grant and it is therefore on the use of civil penalties for failure to respond to a not possible to break it down for any particular category notice of requirement to register was published in September of funding. From April 2013, the new business rates 2013. retention scheme also allows local authorities to retain I have placed a copy in the Library of the House. a portion of business rates collected. Chris Ruane: To ask the Deputy Prime Minister pursuant to the answer of 27 January 2014, Official DEPUTY PRIME MINISTER Report, column 386W, on the electoral register, what is the (a) earliest and (b) latest age a person is allocated Constituencies their national insurance number; and what the earliest date is that an attainer can be registered to vote. Chris Ruane: To ask the Deputy Prime Minister pursuant to the answer of 12 June 2012, Official [193836] Report, column 444W, on constituencies, what Greg Clark: National insurance numbers are sent comparative assessment he has made of the accuracy automatically when individuals reach the age of 15 years of the (a) electoral register and (b) census. [193801] and 9 months. There is no upper age limit to apply for a Greg Clark: Using population figures derived from national insurance number. census data would not provide a better basis for a The law provides that an attainer will be included on review of constituency boundaries than using the electoral the register if they will reach the age of 18 before the register. The electoral register is updated annually, whereas end of a 12-month period starting from the next 1 December the census takes place every ten years; in addition, after the application is made. 555W Written Answers1 APRIL 2014 Written Answers 556W

Chris Ruane: To ask the Deputy Prime Minister Electoral Register: Young People pursuant to the answer of 28 January 2014, Official Report, columns 509-10W, on the electoral register, Chris Ruane: To ask the Deputy Prime Minister with which national organisations his Department is pursuant to the answer of 28 January 2014, Official working to encourage people to register to vote. Report, column 510W, on the electoral register: young [193837] people, how the £4.2 million funding to maximise the rate of voter registration ahead of the transition to Greg Clark: Five national organisations have received individual electoral registration has been spent; and funding as part of the Government’s measures to maximise what measures are in place to monitor the effectiveness voter registration. of this spending. [193839] The Government is working with a number of other Greg Clark: Funding has been provided to all 363 local groups such as the British Youth Council and Operation authorities and valuation joint boards in Great Britain, Black Vote. and five national organisations, to support the cost of activities for maximising registration as part of the Chris Ruane: To ask the Deputy Prime Minister transition to individual electoral registration. pursuant to the answer of 20 May 2013, Official Report, Guidance has been made available to support them in column 443W, on electoral register, what progress he evaluating the success of activity delivered through this has made with private sector credit reference agencies funding. Government officials will continue to work on ensuring the completeness and accuracy of the electoral closely with funding recipients to monitor and measure register. [193919] the outcomes.

Greg Clark: The Government is using public data to confirm the vast majority of electors on the register HEALTH when the transition to individual electoral registration takes place this year. NHS: Working Hours There are no plans to use private sector credit reference agency data. 16. Charlotte Leslie: To ask the Secretary of State for Health what progress has been made by the taskforce reviewing the effects of the Working Time Directive on Electoral Register: Fraud the NHS. [903434]

Chris Ruane: To ask the Deputy Prime Minister with Dr Poulter: There are significant clinical concerns of reference to the answer of 3 September 2012, Official the effect that the European working time directive has Report, columns 93-4W, on electoral register: fraud, on continuity of care for patients and the quality of what assessment he has made of the reasons there have training for doctors. Therefore we have set up an been no successful prosecutions for postal vote fraud independent taskforce chaired by Norman Williams, since 2011. [193880] President of the Royal College of Surgeons. The taskforce will report shortly. Greg Clark: The Government has made no such NHS assessment. 19. David Tredinnick: To ask the Secretary of State Chris Ruane: To ask the Deputy Prime Minister with for Health what steps he has taken to improve patient reference to the answer of 19 June 2012, Official choice in the NHS. [903438] Report, columns 923-24W, on electoral register: fraud, how many successful prosecutions for electoral Norman Lamb: We are committed to patients having registration fraud there were in (a) 2012, (b) 2013 and greater choice and control over their health care. Today, (c) 2014 to date. [194030] we will bring parity to patient’s choice of provider in mental and physical health, and in October this year, we will enable patients to register with GP practices out-of-area, Greg Clark: The Government does not collect this and introduce legal rights to have personal health budgets. data. General Practitioners: Rural Areas Electoral Register: Northern Ireland 22. Tim Farron: To ask the Secretary of State for Health if his Department will provide support for Chris Ruane: To ask the Deputy Prime Minister small rural GP surgeries additional to that provided pursuant to the answer of 22 January 2014, Official through the new GP surgery funding formula. [903442] Report, column 189W,on the electoral register: Northern Ireland, if he will discuss the lessons from the registration Dr Poulter: The Department recognises that the for schools programme in Northern Ireland with the withdrawal of the minimum practice income guarantee Secretary of State for Northern Ireland. [193838] (MPIG) for general practices has raised concerns about the viability of some small practices. That is why we are Greg Clark: I have discussed the Northern Ireland taking the next seven years to implement the change schools initiative with the Minister of State, Northern to MPIG funding fully. Phasing the changes over this Ireland Office, my right hon. Friend the Member for period will allow the minority of practices that lose South Leicestershire (Mr Robathan). funding to adjust gradually to the reduction in payments. 557W Written Answers1 APRIL 2014 Written Answers 558W

NHS England area teams are working with the small Jim Dobbin: To ask the Secretary of State for Health number of practices which are particularly affected. pursuant to the answer to the hon. Member for Congleton They are considering if different arrangements are needed of 20 March 2014, Official Report, column 722W, on to ensure there are appropriate primary medical services abortion, on how many occasions departmental medical for local populations. practitioners have requested further details from a patient’s medical records via the doctor approving termination Abortion in each of the last five years for which records are available. [193683] Jim Dobbin: To ask the Secretary of State for Health (1) what evidence his Department has assessed on Jane Ellison: This information is not recorded. whether giving birth to a baby of a particular gender constitutes a greater risk to the mother’s physical or Air Pollution: Death mental health than termination of the pregnancy; [193284] Luciana Berger: To ask the Secretary of State for (2) what steps he is taking to ensure that the British Health what estimate his Department has made of the Pregnancy Advisory Service is not undertaking number of deaths attributable to long-term exposure to abortions based on gender. [193312] particularate air pollution in each of the last five years. [194102] Jane Ellison: Abortion on the grounds of gender alone is illegal. The 1967 Abortion Act states that two Jane Ellison: In 2010, the Department of Health’s practitioners have to be expert advisory Committee on the medical effects of air “of the opinion, formed in good faith” pollutants published an estimate of the mortality effect in 2008 of long term exposure to particulate air pollution that the woman has grounds for an abortion according arising from human activities. The mortality burden for to the criteria set out in that Act. the United Kingdom was estimated as an effect equivalent The Department has made this position clear to all to nearly 29,000 deaths. providers, including the British Pregnancy Advisory Estimates of the fraction of mortality in English Service, and will do so again in the forthcoming further local authority areas in 2010 and 2011 attributable to guidance. long-term exposure to particulate air pollution arising from human activities are published by Public Health Mr Amess: To ask the Secretary of State for Health England as one of the indicators in the Department’s pursuant to the answer to the hon. Member for Public Health Outcomes Framework. For England as a Congleton of 25 February 2014, Official Report, whole, this figure is approximately 5.5%. column 156W, on sex-selective abortion, if he will ensure that the Government’s forthcoming guidance on compliance with the Abortion Act 1967 addresses the All Party Groups question of whether or not it is necessary for registered medical practitioners to see a woman in order to form Chris Ruane: To ask the Secretary of State for Health an opinion in good faith that the continuance of the what his Department’s policy is on allowing officials to pregnancy would adversely affect her mental or physical appear before all-party parliamentary groups. [193559] health; and if he will make a statement. [193295] Dr Poulter: I refer the hon. Member to the answer Jane Ellison: The purpose of the guidance is to clarify given by the Minister for the Cabinet Office and Paymaster for medical practitioners what is required of them when General, my right hon. Friend the Member for Horsham making a decision under the Abortion Act. This guidance (Mr Maude), on 26 March 2014, Official Report, is currently in development and will be published in due column 300W. course. Ambulance Services Jim Dobbin: To ask the Secretary of State for Health what assessment he has made of the impartiality of abortion counselling advice provided by Marie Stopes Andrew George: To ask the Secretary of State for Health (1) if he will estimate the resource implications and the British Pregnancy Advisory Service. [193314] of requiring all ambulance trusts to meet category A eight-minute response time in all rural locations; Jane Ellison: Guidance on the provision of non- judgmental counselling was included in the Government’s [193611] Framework for Sexual Health Improvement published (2) what comparative assessment he has made of the in March 2013. performance of ambulance trusts serving predominantly (a) rural and (b) urban areas against the (i) eight-minute Jim Dobbin: To ask the Secretary of State for Health and (ii) 19-minute response time targets for category A how many abortion notification HSA4 forms have been patients; [193612] referred to (a) to the General Medical Council and (b) (3) what plans he has to review ambulance response the police following scrutiny by his Department since targets for category A and category C call-outs; 2006. [193618] [193613] Jane Ellison: There have been no referrals to the (4) if he will review the (a) response time targets and General Medical Council nor to the police in relation-to (b) resources available for ambulance trusts which HSA4 forms submitted to the chief medical officer. serve in largely or predominantly rural areas; [193614] 559W Written Answers1 APRIL 2014 Written Answers 560W

(5) if he will make a comparative assessment of possible. Longer term, local ambulance trusts are working response (a) outcomes and (b) times for category A closely with their local health economies to find innovative calls for ambulance trusts in (i) rural and (ii) urban ways of managing demand including, more use of telephone locations. [193615] triage and appropriate referral to suitable local health providers where that is clinically appropriate. Jane Ellison: No comparative assessment has been Ambulance trusts constantly review their operational made of the performance of ambulance trusts serving deployment regimes to attempt to maximise response predominantly (a) rural and (b) urban areas against times to rural areas. NHS England expects ambulance the (i) eight-minute and (ii) 19-minute response time trusts to deal with all emergency calls on the appropriate targets for category A patients because ambulance trusts basis, no matter whether they are from a rural or urban are not confined to given areas and so can and do work locality. across locations, including across urban and rural areas. A comparative assessment of response (a) outcomes As commissioners of ambulance services, clinical and (b) times for category A calls for ambulance trusts commissioning groups (CCGs) supported by area teams in (i) rural and (ii) urban locations will not be made must work with ambulance trusts directly to address because data on ambulance performance is collected at any concerns they may have about performance standards national and trust level and as a result does not distinguish generally and delivery of services to patients. The between rural and urban areas. Previous ambulance Department expects CCGs to ensure that the appropriate response time standards based on rural and urban areas services are provided to their populations, both in urban were discontinued in the early 2000’s, partly due to and rural areas. definitional issues and inconsistency of response. NHS England is currently undertaking a review of Work is currently being undertaken collaboratively urgent and emergency care, which is considering the between the Department and NHS England on how way the system delivers services, including ambulance data can possibly be used differently to provide more services. As part of the Review, NHS England is working insight into any variations in performance at a more closely with the Association of Ambulance Chief Executives in-depth level. However, it is important to recognise to see what can be done to improve ambulance performance, that ambulance performance data sits within a suite of including performance in rural areas. data, including clinical outcome indicators, collected to NHS England is focusing on whole system change to provide a richer picture of the delivery of services to the delivery of urgent and emergency care, including patients across the field of urgent and emergency care. new models of care for ambulance services; as a result No estimation will be made of the resource implications the clinical and performance standards which underpin of requiring all ambulance trusts to meet category A this new offer from the ambulance service may be very eight-minute response time in all rural locations. Each different to those of the present. Therefore, it does not ambulance trust is required to plan to provide appropriate make sense to make piecemeal changes to the current resources to meet local demand. How a trust organises performance standards before we know the outcome of itself operationally to take into account its particular NHS England’s review. geography and any related challenges is its responsibility. NHS England has, however, done an assessment on Andrew George: To ask the Secretary of State for the resources available for ambulance trusts which serve Health what the response outcomes were for each rural areas. This assessment shows ambulance services ambulance trust for category B calls in each of the use advanced technology to accurately predict where 10 years for which records are available up to 2011. demand is most likely to come from given past call [193685] history.They then station vehicles accordingly.Ambulance trusts also include the incorporation of first responder and co-responder schemes based out in the community Jane Ellison: The information is shown in the following to ensure skilled help reaches patients as quickly as table, but is not directly comparable between years.

Percentage of category B calls1,2 responded to within 19 minutes by ambulance trust, 2004-05 to 2010-11 2004-054 (October to Ambulance Trust3 March) 2005-06 2006-075,6 2007-08 2008-097 2009-10 2010-118,9

England 87.8 87.3 90.5 91.5 91.0 91.0 91.2 North West Ambulance 85.6 85.6 91.2 91.0 87.6 85.9 87.0 Service NHS Trust Yorkshire Ambulance 88.4 86.9 91.9 92.4 90.6 91.1 93.7 Service NHS Trust East Midlands 78.8 83.4 91.0 94.2 95.0 94.5 88.3 Ambulance Service NHS Trust West Midlands 93.1 91.6 95.6 96.0 95.4 94.1 95.0 Ambulance Service NHS Trust East of England 93.5 95.1 94.2 92.7 93.3 94.0 93.1 Ambulance Service NHS Trust London Ambulance 81.2 75.2 81.2 84.4 84.5 86.4 87.2 Service NHS Trust 561W Written Answers1 APRIL 2014 Written Answers 562W

Percentage of category B calls1,2 responded to within 19 minutes by ambulance trust, 2004-05 to 2010-11 2004-054 (October to Ambulance Trust3 March) 2005-06 2006-075,6 2007-08 2008-097 2009-10 2010-118,9

South East Coast 94.0 94.3 93.8 95.2 94.6 93.4 94.3 Ambulance Service NHS Foundation Trust South Central 92.0 92.0 91.4 91.0 88.0 88.3 91.4 Ambulance Service NHS Foundation Trust Great Western 80.4 81.8 83.0 85.7 87.4 90.8 91.7 Ambulance Service NHS Trust South Western 90.7 89.9 93.4 93.7 94.2 95.8 95.6 Ambulance Service NHS Foundation Trust Isle of Wight NHS Trust 97.2 98.3 97.9 98.3 96.2 96.7 97.8 1 From 2007-08 urgent calls are included (previous years relate to emergency calls only). 2 Category B; presenting conditions, which though serious are not immediately life threatening and must receive a response within 19 minutes in 95% of cases. 3 Prior to 2006-07 there were 31 ambulance services: these have been mapped to match the later years for comparability purposes. On 1 October 2007 Staffordshire Ambulance Service NHS Trust merged with West Midlands Ambulance Service NHS Trust. For comparability, data for these two trusts have been merged for all previous years. 4 Up to October 2004 category B was merged with category C, and we are unable to separate the categories prior to this point. 5 For 2006-07 the 14/19 minute response times were dropped with the urban/rural split and replaced with 19 minutes for all trusts. 6 From 2006-07 the number of calls, where following the arrival of a response no ambulance was required, were excluded from the calculation of the response rate within 19 minutes. Data will therefore not be directly comparable with previous years. 7 From 2008-09 the starting point for response time measurement was changed, data relating to 19 minute responses from 2008-09 are not comparable with previous years. 8 Due to changes in the category B 19 minute definitions for 2010-11 these data are not fully comparable with previous years. 9 Category B ceased at the end of 2010-11 and is no longer available. Source: Health and Social Care Information Centre

Cancer improved knowledge and management of consequences of treatment. Improvement in knowledge of the late effects of Jim Dobbin: To ask the Secretary of State for Health cancer treatment, including haematological cancers to (a) what progress he has made in implementing the inform commissioning of services, is one of four priority National Cancer Survivorship Initiative work areas for the next two years. There are already (b) recommendations and the National Cancer examples of services being commissioned directly by Survivorship Initiative recommendation that services NHS England to meet complex and rare late effects of to treat complex problems arising from cancer cancer treatment. If the emerging evidence indicates the treatment be commissioned on a national basis; and need for additional services which fulfil the criteria for what assessment he has made of complex problems NHS England prescribed services, then this would be arising from bone marrow transplant in the context of the advice provided by the National Cancer Survivorship such treatments. [193649] Initiative to the NHS England Board. Jane Ellison: NHS England is supporting a two year Colorectal Cancer programme of work in collaboration with Macmillan Cancer Support to develop and implement evidence Mr Baron: To ask the Secretary of State for Health based findings from the National Cancer Survivorship how many people were eligible for and participated in Initiative. There are four agreed priorities: the bowel cancer screening programme in (a) England, (b) each of the five regional programme hubs and (c) implementation of the four components of the Recovery Package; each of the 59 regional screening centres in (i) 2009-10, promoting the benefits of physical activity as part of treatment (ii) 2010-11, (iii) 2011-12, and (iv) 2012-13. [194093] and follow up care; implementation of risk stratified pathways supported by evidence Jane Ellison: The requested information has been based surveillance; and provided in the following table.

Number of people who were eligible and participates in the bowel cancer screening programme in England by regional programme hubs and screening centres

Number of people who were eligible and who participated in the bowel cancer screening programme-England

2009-10 2010-11

Adequately England Invited1 screened2 Uptake (%) Invited Adequately screened Uptake (%)

Total 2,642,091 1,445,596 54.71 3,460,901 1,976,445 57.11 563W Written Answers1 APRIL 2014 Written Answers 564W

Number of people who were eligible and who participated in the bowel cancer screening programme-England 2011-12 2012-13 England Invited Adequately screened Uptake (%) Invited Adequately screened Uptake (%)

Total 3,623,950 1,996,623 55.10 3,839,325 2,245,471 58.49

Number of people who were eligible and who participated in the bowel cancer screening programme-Programme Hub 2009-10 2010-11 Adequately Adequately Hub Invited screened Uptake (%) Invited screened Uptake (%)

Eastern 578,535 329,403 56.94 696,296 418,378 60.09 London 284,975 125,565 44.06 371,715 167,613 45.09 Midlands and 636,800 341,418 53.61 846,664 472,703 55.83 North West North East 426,920 243,605 57.06 588,772 345,346 58.66 Southern 714,861 405,605 56.74 957,454 572,405 59.78 Total 2,642,091 1,445,596 54.71 3,460,901 1,976,445 57.11

Number of people who were eligible and who participated in the bowel cancer screening programme-Programme Hub 2011-12 2012-13 Adequately Adequately Hub Invited screened Uptake (%) Invited screened Uptake (%)

Eastern 692,416 400,322 57.82 767,696 466,903 60.82 London 405,566 183,249 45.18 404,338 194,613 48.13 Midlands and 945,292 506,000 53.53 956,914 543,938 56.84 North West North East 572,604 323,811 56.55 629,048 375,662 59.72 Southern 1,008,072 583,241 57.86 1,081,329 664,355 61.44 Total 3,623,950 1,996,623 55.10 3,839,325 2,245,471 58.49

Number of people who were eligible and who participated in the bowel cancer screening programme-Screening Centre 2009-10 2010-11 Adequately Adequately Centre Invited screened Uptake (%) Invited screened Uptake (%)

Bath, Swindon and 43,935 25,225 57.41 49,875 28,957 58.06 Wiltshire Bedfordshire 43,114 22,770 52.81 32,042 18,329 57.20 Berkshire 45,602 23,039 50.52 58,104 33,240 57.21 Bolton 33,504 16,423 49.02 50,710 27,834 54.89 Bradford and Airedale 26,325 15,113 57.41 40,180 22,039 54.85 Bristol and Weston 53,141 28,089 52.86 46,708 26,774 57.32 Buckinghamshire and 22,135 11,929 53.89 43,111 24,354 56.49 Milton Keynes Calderdale, Kirklees and 57,504 31,093 54.07 58,238 32,538 55.87 Wakefield Cambridge 35,242 20,847 59.15 54,798 34,248 62.50 Cheshire 40,063 23,943 59.76 46,036 27,421 59.56 Cornwall 22,028 12,532 56.89 43,989 25,937 58.96 County Durham and 28,720 18,040 62.81 45,137 26,956 59.72 Darlington Coventry and Warwickshire 40,873 26,052 63.74 67,309 42,197 62.69 Cumbria and Morecombe 45,530 26,781 58.82 48,609 31,554 64.91 Derbyshire 60,039 35,701 59.46 79,970 47,281 59.12 Dorset 51,710 30,757 59.48 69,849 46,339 66.34 East and North 31,754 18,093 56.98 31,560 19,115 60.57 Hertfordshire East Kent 52,437 28,903 55.12 43,538 24,554 56.40 Gloucestershire 34,162 21,301 62.35 49,866 30,580 61.32 Hampshire 50,942 29,349 57.61 61,712 39,860 64.59 Harrogate 53,091 27,845 52.45 73,168 41,206 56.32 Heart of England 37,091 21,192 57.14 50,641 28,137 55.56 565W Written Answers1 APRIL 2014 Written Answers 566W

Number of people who were eligible and who participated in the bowel cancer screening programme-Screening Centre 2009-10 2010-11 Adequately Adequately Centre Invited screened Uptake (%) Invited screened Uptake (%)

Herefordshire and 32,907 19,073 57.96 54,413 32,490 59.71 Worcestershire Hull and East Yorkshire 76,889 46,370 60.31 87,587 53,738 61.35 Kettering and 97,985 53,466 54.57 100,217 58,643 58.52 Northamptonshire Lancashire 82,534 43,869 53.15 96,171 54,932 57.12 Lincolnshire 12,814 7,559 58.99 53,135 32,041 60.30 Merseyside and North 87,704 44,280 50.49 133,863 68,333 51.05 Cheshire NE London 52,176 22,234 42.61 68,539 30,265 44.16 North and East Devon 35,567 20,727 58.28 42,140 25,351 60.16 North Essex 60,800 35,011 57.58 79,933 48,721 60.95 North of Tyne 41,656 23,478 56.36 66,105 40,509 61.28 North Staffordshire 48,874 26,135 53.47 44,133 25,711 58.26 Norwich 70,387 44,597 63.36 92,630 59,033 63.73 Nottinghamshire 52,152 28,741 55.11 51,949 31,721 61.06 Oxfordshire 4,983 2,669 53.56 40,134 22,209 55.34 Pennine 41,379 19,660 47.51 30,645 16,798 54.81 Peterborough and 25,544 14,314 56.04 34,050 19,757 58.02 Hinchingbrooke Sandwell and West 47,797 20,750 43.41 48,774 23,035 47.23 Birmingham Shropshire 18,201 10,474 57.55 31,705 18,492 58.33 Solent and West Sussex 39,940 24,887 62.31 65,131 39,333 60.39 Somerset 35,069 20,463 58.35 44,629 29,324 65.71 South Devon 46,802 29,065 62.10 55,732 34,635 62.15 South East London 59,434 25,028 42.11 63,085 29,943 47.46 South Essex 43,712 23,148 52.96 57,046 32,672 57.27 South of Tyne 37,128 21,175 57.03 49,858 27,629 55.42 South Yorkshire and 69,071 39,167 56.71 113,509 69,782 61.48 Bassetlaw St George’s, London 54,759 26,788 48.92 70,723 33,961 48.02 St Marks, London 48,364 22,176 45.85 58,246 26,442 45.40 Surrey 89,702 48,917 54.53 89,750 54,273 60.47 Sussex 44,990 25,080 55.75 76,554 44,413 58.02 Tees 47,141 27,818 59.01 61,822 35,177 56.90 University College London 43,329 19,963 46.07 55,110 25,320 45.94 West Herts 29,045 15,957 54.94 27,383 15,740 57.48 West Kent and Medway 41,712 22,692 54.40 75,238 41,793 55.55 West London 35,637 13,937 39.11 59,580 23,549 39.53 Withington 18,411 8,700 47.25 60,872 29,861 49.06 Wolverhampton 58,554 32,211 55.01 72,653 40,257 55.41 Unknown screening centre3 - - - 2,707 1,112 41.08

Total 2,642,091 1,445,596 54.71 3,460,901 1,976,445 57.11

Number of people who were eligible and who participated in the bowel cancer screening programme-Screening Centre 2011-12 2012-13 Adequately Adequately Centre Invited screened Uptake (%) Invited screened Uptake (%)

Bath, Swindon and 52,485 31,037 59.13 58,120 35,215 60.59 Wiltshire Bedfordshire 29,985 15,844 52.84 40,692 23,359 57.40 Berkshire 65,548 33,836 51.62 69,469 40,550 58.37 Bolton 57,381 28,195 49.14 61,898 34,550 55.82 Bradford and Airedale 38,166 20,392 53.43 42,606 24,099 56.56 Bristol and Weston 44,355 23,542 53.08 61,933 36,630 59.14 567W Written Answers1 APRIL 2014 Written Answers 568W

Number of people who were eligible and who participated in the bowel cancer screening programme-Screening Centre 2011-12 2012-13 Adequately Adequately Centre Invited screened Uptake (%) Invited screened Uptake (%)

Buckinghamshire and 43,425 24,672 56.82 39,643 23,135 58.36 Milton Keynes Calderdale, Kirklees and 62,166 35,232 56.67 74,502 42,549 57.11 Wakefield Cambridge 62,917 36,870 58.60 69,753 42,965 61.60 Cheshire 49,722 28,859 58.04 48,334 29,499 61.03 Cornwall 44,043 26,172 59.42 39,792 24,251 60.94 County Durham and 41,375 24,508 59.23 45,514 27,836 61.16 Darlington Coventry and Warwickshire 68,543 41,124 60.00 69,536 43,692 62.83 Cumbria and Morecombe 62,017 36,875 59.46 57,349 36,901 64.34 Derbyshire 91,530 53,743 58.72 99,373 60,292 60.67 Dorset 77,809 46,501 59.76 81,985 54,367 66.31 East and North 45,455 25,388 55.85 39,909 24,740 61.99 Hertfordshire East Kent 38,383 21,934 57.15 45,823 27,009 58.94 Gloucestershire 48,959 30,106 61.49 55,292 35,314 63.87 Hampshire 75,359 44,023 58.42 76,221 49,053 64.36 Harrogate 60,291 34,524 57.26 67,832 39,734 58.58 Heart of England 48,870 26,697 54.63 64,075 36,248 56.57 Herefordshire and 62,632 37,544 59.94 71,065 43,248 60.86 Worcestershire Hull and East Yorkshire 95,878 56,724 59.16 95,792 59,303 61.91 Kettering and 78,474 43,402 55.31 124,391 74,720 60.07 Northamptonshire Lancashire 117,229 62,737 53.52 111,042 64,294 57.90 Lincolnshire 47,876 28,778 60.11 33,967 20,687 60.90 Merseyside and North 136,052 68,233 50.15 136,739 71,998 52.65 Cheshire NE London 71,822 30,679 42.72 65,560 29,759 45.39 North and East Devon 38,180 23,321 61.08 38,169 23,718 62.14 North Essex 60,975 36,291 59.52 82,279 50,468 61.34 North of Tyne 63,704 35,469 55.68 67,722 41,478 61.25 North Staffordshire 52,068 28,883 55.47 48,282 29,058 60.18 Norwich 92,431 58,603 63.40 95,526 60,393 63.22 Nottinghamshire 50,025 28,675 57.32 55,265 34,409 62.26 Oxfordshire 32,329 18,295 56.59 30,954 17,872 57.74 Pennine 57,044 27,745 48.64 35,854 19,216 53.60 Peterborough and 32,803 19,194 58.51 27,070 15,789 58.33 Hinchingbrooke Sandwell and West 62,281 26,925 43.23 63,568 30,366 47.77 Birmingham Shropshire 33,926 20,176 59.47 32,267 19,463 60.32 Solent and West Sussex 78,381 47,340 60.40 84,676 52,723 62.26 Somerset 51,671 30,145 58.34 51,101 33,168 64.91 South Devon 55,989 34,380 61.40 57,143 35,954 62.92 South East London 73,760 33,088 44.86 69,653 34,747 49.89 South Essex 51,460 26,883 52.24 60,614 35,280 58.20 South of Tyne 49,932 28,239 56.55 57,025 32,587 57.15 South Yorkshire and 115,653 63,068 54.53 115,165 71,078 61.72 Bassetlaw St George’s, London 83,180 40,958 49.24 86,436 44,694 51.71 St Marks, London 57,299 27,515 48.02 56,899 27,840 48.93 Surrey 115,466 64,327 55.71 119,185 73,620 61.77 Sussex 76,885 44,315 57.64 80,822 48,517 60.03 Tees 61,855 35,652 57.64 70,494 41,674 59.12 University College London 60,107 27,546 45.83 62,359 30,636 49.13 West Herts 39,556 20,966 53.00 44,227″ 26,674 60.31 West Kent and Medway 68,480 39,136 57.15 90,837 53,144 58.50 West London 59,356 23,402 39.43 63,229 26,862 42.48 Withington 60,520 30,604 50.57 67,825 34,363 50.66 569W Written Answers1 APRIL 2014 Written Answers 570W

Number of people who were eligible and who participated in the bowel cancer screening programme-Screening Centre 2011-12 2012-13 Adequately Adequately Centre Invited screened Uptake (%) Invited screened Uptake (%)

Wolverhampton 68,833 36,843 53.53 75,551 43,185 57.16 Unknown screening centre3 1,054 468 44.40 921 498 54.07

Total 3,623,950 1,996,623 55.10 3,839,325 2,245,471 58.49 1 Routinely invited: Those that are invited to participate in Faecal Occult Blood test.(FOBt) screening, as opposed to those that self-refer into the programme. 2 Adequately screened: reaching a definitive FOBt outcome of either ’Normal’ or ’Abnormal’ from potentially multiple FOBt test kits. 3 Patients with a negative FOBt result who have changed their address or GP during the screening process and therefore were never assigned a local screening centre. Source: NHS Cancer Screening Programmes

Food: EU Action to introduce a Health Surcharge as part of the visa process for those coming here for an extended period. Barry Gardiner: To ask the Secretary of State for Those that pay the surcharge will be able to access the Health whether the Food Standards Agency has carried NHS in a similar way to British residents. out any research on the European Commission’s published proposals to change EU Regulation 882/2004 governing Health: Screening official controls in the food and agriculture industries. [194261] Luciana Berger: To ask the Secretary of State for Health what plans he has to ensure that local authorities Jane Ellison: On 9 October 2013 the Food Standards in England pursue a continuous improvement in the Agency published a draft impact assessment on the proportion of the eligible population offered and taking proposals to change EU Regulation 882/2004 as part of up NHS health checks. [194103] a formal 12-week consultation. The impact assessment was produced in collaboration with the Department for Jane Ellison: Public Health England (PHE) is committed Environment, Food and Rural Affairs and other to helping local government improve the uptake and Government Departments following a programme of impact of the programme. In the last 12 months PHE events and meetings with stakeholders throughout the has supported local delivery and continuous improvement United Kingdom agri-food chain to understand the in offers and uptake by progressing action against the potential implications of the proposals on consumers, recommendations set out in the National Health Service the enforcement community and industry. Health Check Implementation Review and Action Plan. The impact assessment is being updated as a result of This activity has included sharing knowledge and additional data and evidence generated by the consultation resources through the programme’s national website and will be kept updated as the proposals develop and networks; delivering a national conference attended during negotiations. by over 400 delegates; and supporting local government to transition the findings from our behavioural insight General Practitioners work into practice. PHE has recently introduced a national quality improvement framework, which will Mr Sanders: To ask the Secretary of State for Health support local areas to focus on improving uptake and what powers clinical commissioning groups have to outcomes. reduce missed GP appointments; and if he will make a In the coming year PHE will support local activity to statement. [193603] improve offers, uptake and the quality and consistency of delivery through the development of a sector led Jane Ellison: General practitioners are independent improvement programme. The launch of new branding contractors who work under contracts for NHS England and a marketing toolkit that enables local leads to tailor to provide NHS services. It is the responsibility of information to their local population will further contribute individual practices to minimise missed appointments. to improving uptake. PHE is also partnering with NHS Additionally, the NHS constitution emphasises patients’ Choices to develop a new public-facing web presence responsibilities, stating that patients for the programme to help improve the public’s awareness “should keep appointments or cancel within reasonable time”. and engagement of the programme.

Mr Leech: To ask the Secretary of State for Health Hospitals: Industrial Health and Safety what assessment he has made of the potential effect of proposed changes in the Immigration Bill on the role of Jesse Norman: To ask the Secretary of State for GPs on the level of public trust in GPs; and if he will Health what recent discussions he has had with the make a statement. [193635] Health and Safety Executive on health and safety in NHS hospitals. [903440] Jane Ellison: There are no proposals in the Immigration Bill to change the role of any national health service Dr Poulter: The Department works closely with the staff including general practitioners. The Immigration Health and Safety Executive (HSE) to ensure that NHS Bill Health Clauses set out the Government’s intention services are made available to patients, visitors and staff 571W Written Answers1 APRIL 2014 Written Answers 572W in a safe environment. The Department has been working and prevented from entering the food chain by officials with the HSE and the Care Quality Commission to working for and on behalf of the Food Standards ensure that the actions of the two regulators are Agency since 1 April 2012. [194195] co-ordinated in holding providers of health and adult social care to account for failings to deliver acceptable Jane Ellison: The following table states how many care, in line with the Government’s commitments set instances of the cystic stage (C Bovis) of the human out in the response to the Francis Inquiry ″Hard Truths: tapeworm Taenia Saginata have been identified during The Journey to putting patients first″. official post mortem inspection and prevented from entering the food chain by officials working for and on Infant Mortality behalf of the Food Standards Agency since April 2012.

Mr Gregory Campbell: To ask the Secretary of State Rejection Type Total number of conditions for Health what outcomes he expects to be achieved over the next 12 months as a result of steps taken to Cattle Cysticercus bovis— 3,246 Localised reduce the level of still birth and infant mortality rates. Cattle Cysticercus bovis— 2,926 [194122] Generalised Note: Dr Poulter: We have made reducing infant mortality Localised included carcase parts and offal and Generalised included an area of improvement for the national health service total carcase. in the NHS Outcomes Framework. Reducing infant mortality is also highlighted as an outcome indicator in Huw Irranca-Davies: To ask the Secretary of State the Public Health Outcomes Framework. for Health how many instances of (a) Cysticercus The Department is currently working in partnership Tenuicollis (adult tapeworm - Taenia Hydatigena), (b) with Sands (the Stillbirth and Neonatal Death charity) Cysticercus Ovis (adult tapeworm - Taenia Ovis), (c) and a range of key organisations, including NHS England, Hydatid Cysts (adult tapeworm - Echinococcus Public Health England, the Royal College of Midwives Granulosus), (d) Generalised (cysts identified in and the Royal College of Obstetricians and Gynaecologists, multiple parts of the animal including the musculature to take forward a stillbirth prevention work programme. the consumer would define as meat) and (e) The latest data from the Office of National Statistics Cysticercus Ovis have been identified at official shows that: post-mortem inspections and prevented from entering the food chain by officials working for and on behalf of In 2012 the stillbirth rate fell to 4.8 stillbirths per 1,000 live and stillbirths. This compares to a rate of 5.2 in 2011 and is the lowest the Food Standards Agency since 1 April 2012. rate recorded in England since the definition of stillbirth changed [194196] in 1993. Infant mortality rates have decreased over time in England, Jane Ellison: The following number of instances have with 5.2 deaths per 1,000 live births in 2002 compared with been identified at official post mortem inspection and 4.0 deaths per 1,000 live births in 2012. There has been a decline prevented from entering the food chain by officials in infant mortality rate in England compared to the previous year working for and on behalf of the Food Standards (4.2 deaths per 1,000 live births, 2011). Agency (FSA) since April 2012: Livestock: Diseases Some conditions are not recorded by the FSA. The list of conditions for cattle, sheep, goats, pigs and Huw Irranca-Davies: To ask the Secretary of State poultry were created following expert working group for Health how many instances of parasitic lung worms workshops for each species over the last five years. have been identified at official post mortem inspection Members of the workshops included stakeholders from and prevented from entering the food chain by officials the Department for Environment Food and Rural Affairs, working for and on behalf of the Food Standards Animal Health, EBLEX, BPEX, private veterinarians, Agency since 1 April 2012. [194194] industry vets, FSA, Association of Meat Inspectors. The data for sheep, goats, deer and horses is from Jane Ellison: The following table states how many April 2012 to December 2013 all other species is April instances of parasitic lung worms have been identified 2012 to March 2014. during official post mortem inspection and prevented from entering the food chain by officials working for Total and on behalf of the Food Standards Agency since number April 2012. Condition identified (a) Cysticercus Tenuicollis (adult tapeworm—Taenia 2,144,395 Rejection Type Total number of conditions Hydatiqena (b) Cysticercus Ovis (adult tapeworm—Taenia Ovis) 190,489 Parasitic Lung worms 14,878 (c) Hydatid Cysts (adult tapeworm—Echinococcus 69,685 The figure provided is for cattle only. Parasitic lung Granulosus) worm is not recorded under an individual category in (d) Generalised (cysts identified in multiple parts of 6,172 other species. the animal including the musculature the consumer would define as meat)1 (e) Generalised Cysticercus Ovis 2— Huw Irranca-Davies: To ask the Secretary of State 1 Generalised—The figure provided the number of instances of the for Health how many instances of the cystic stage cystic stage (C Bovis) of the human tapeworm Taenia Saginata. (C Bovis) of the human tapeworm Taenia Saginata 2 Generalised Cysticercus Ovis—there is no generalised data held for have been identified at official post mortem inspection this. The individual number of incidences are reported. 573W Written Answers1 APRIL 2014 Written Answers 574W

Barry Gardiner: To ask the Secretary of State for (i) pericarditis, (j) foot infections or problems, (k) arthritis Health how many instances of (a) pneumonia, (b) septic and joint problems, (l) septicaemia and fever, (m) pneumonia, (c) Pericarditis, (d) Septic Pericarditis, tumours, (n) air sacculitis, (o) Marek’s disease, (p) (e) Peritonitis, (f) septic peritonitis, (g) Oedema, white muscular disease and (q) Aspergillosis have been (h) Emaciation, (i) Bruising or trauma, (j) Abscesses identified at post mortem inspection of poultry and in offal, (k) Abscesses in carcases, (l) Pyaemia, prevented from entering the food chain 1 April 2012. (m) animals with septicaemia, (n) Animals with tumours, [194203] (o) Hydronephrosis, (p) Nephritis and septic nephritis, (q) Lymphadenitis, (r) Tuberculosis, (s) Erysipelas Jane Ellison: The following quantity of conditions in pigs, (t) Steatosis, (u) Actinobacillous and have been identified in poultry at official post mortem (v) Actinomycosus in red meat animals have been inspection and prevented from entering the food chain identified at official post mortem inspection and prevented by officials working for and on behalf of the Food from entering the food chain by officials working for an Standards Agency (FSA) since April 2012: on behalf of the FSA since 1 April 2012. [194202] Some conditions are not recorded by the FSA. The list of conditions for cattle, sheep, goats, pigs and Jane Ellison: The following quantity of conditions poultry were created following expert working group have been identified in red meat animals at official post workshops for each species over the last five years. mortem inspection and prevented from entering the Members of the workshops included stakeholders from food chain by officials working for and on behalf of the the Department for Environment, food and Rural Affairs Food Standards Agency (FSA) since April 2012: , Animal Health, EBLEX, BPEX, private veterinarians, Some conditions are not recorded by the FSA. The industry vets, FSA, Association of Meat Inspectors. list of conditions for cattle, sheep, goats, pigs and poultry were created following expert working group Condition Total number identified workshops for each species over the last five years. Members of the workshops included stakeholders from (a) contamination 2,853,768 the Department for Environment Food and Rural Affairs, (b) cellulitis. 2,851,377 Animal Health, EBLEX, BPEX, private veterinarians, (c) dermatitis 442,476 industry vets, FSA, Association of Meat Inspectors. (d) ascites 5,556,259 The data for sheep, goats, deer and horses is from (e) salpingitiss 205,517 April 2012 to December 2013, all other species is April (f) egg impaction 1— 2012 to March 2014. (g) peritonitis 1,709,401 (h) pericarditis 863,985 Condition Total number identified (i) pericarditis 2— (j) foot infections or problems 1— (a) Pneumonia 2,799,461 (k) arthritis and joint problems 533,504 (b) Septic pneumonia 1,281 (1) septicaemia and fever 3,981,157 (c) Pericarditis 594,408 (m) tumours 380,892 (d) Septic Pericarditis No data held (n) air sacculitis 238,408 (e) Peritonitis 466,518 (o) Marek’s disease 1— (f) Septic peritonitis 6,339 (p) white muscular disease 1— (q) Oedema As below (q) Aspergillosis 1— (h) Emaciation/Generalised 24,288 1 Data not held. Oedema 2 As for (h). (i) Bruising or trauma 197,187 Note: (j) Abscesses in offal 294,580 (a) Faecal contamination is not recoded by the FSA. The figure for (k) Abscesses in carcases 199,435 all contamination has been provided. A figure for (g) peritonitis has been provided not (g) peritonise as described in the question. (j) and (k) Abscesses 451,461 (l) Pyaemia 33,414 (m) Animals with septicaemia 6,069 Huw Irranca-Davies: To ask the Secretary of State for Health how many times lesions on livers caused by (n) Animals with tumours 1,490 the intermediate stage of the parasitic roundworm (o) Hydronephrosis 64,819 ascaris suum identified in pigs at official post mortem (p) Nephritis and septic nephritis No data held inspection have been prevented from entering the food (q) Lymphadenitis No data held chain by officials working for or on behalf of the Food (r) Tuberculosis 27,901 Standards Agency since 1 April 2012. [194265] (s) Erysipelas in pigs 9,908 (t) Steatosis No data held Jane Ellison: The following table states how many (u) Actinobacillous No data held times lesions on livers caused by the intermediate stage (v) Actinomycosus No data held of the parasitic roundworm ascaris suum have been Note: identified during official post mortem inspection and (j) and (k) Abscesses relates to sheep, goats, deer and horses. This has been recoded separately as the data is not recorded by either offal prevented from entering the food chain by officials or carcase. working for and on behalf of the Food Standards Agency since April 2012: Barry Gardiner: To ask the Secretary of State for Health how many instances of (a) faecal contamination, Rejection type Total number of conditions (b) cellulitis, (c) dermatitis, (d) ascites, (e) salpingitiss, Milk Spots 569,250 (f) egg impaction, (g) peritonis, (h) pericarditis, 575W Written Answers1 APRIL 2014 Written Answers 576W

Huw Irranca-Davies: To ask the Secretary of State UK for more than six months would be required to pay for Health how many times the liver fluke fasciola a health surcharge as a contribution to the costs of their hepatica identified at official post mortem inspection health care and would not be granted entry if they did has been prevented from entering the food chain by not do so, unless exempt from this requirement. They officials working for and on behalf of the Food Standards would then be able to access the NHS on the same basis Agency performing thorough meat inspection since 1 as an ordinary resident, including free access to maternity April 2012. [194266] services. The Government responded on 30 December 2013 to Jane Ellison: The following table states how many the consultation ″Sustaining services, ensuring fairness: times the liver fluke fasciola hepatica have been identified a consultation on migrant access and financial contribution during official post mortem inspection and prevented to NHS provision in England″, and confirmed that from entering the food chain by officials working for those not subject to the surcharge, i.e. short-term visitors and on behalf of the Food Standards Agency (FSA) coming to the UK for less than six months and those since April 2012: here illegally, will continue to be charged for maternity services unless an exemption from charge category applies. Total number of Percentage of Rejection type conditions throughput Medical Equipment Liver fluke fasciola 2,771,130 8.6 April 2010—March 2012 Mr Amess: To ask the Secretary of State for Health Liver fluke fasciola 3,028,335 9.4 what stomacare products were prescribed in each NHS April 2012—March Hospital Trust and Primary Care Trust in England in 2014 each of the last five years by (a) product and (b) manufacturer. [193610] The data for sheep, goats, deer and horses is from April 2012 to December 2013 all other species is April Norman Lamb: In terms of national health service 2012 to March 2014. trusts, the information requested is not held centrally as Liver fluke is a common parasitic disease of both such products are not provided by hospital pharmacy, cattle and sheep in the United Kingdom, caused by the departments. In terms of primary care trusts, information parasite Fasciola hepatica, and is estimated to cost the is held but due to the volume of information requested, cattle industry £23 million annually (source: National estimated at over three million records, and technical Animal Disease Information Service). In cattle, infection problems with extracting this, it could be provided only is more commonly encountered in beef cows grazing at a disproportionate cost. poor wet pasture but disease can be seen in dairy cattle especially after summering cattle, most likely bulling Mr Amess: To ask the Secretary of State for Health heifers, away from home on infested pastures. what sponsorship arrangements are in place between Where this condition is seen in liver from cattle or manufacturers of stoma care products and individual sheep presented for slaughter, results are fed back to the NHS trusts; and how many such arrangements were in farmers as part of the FSA’s collection and communication place in each of the last five years. [193680] of inspection results, allowing farmers to organise treatment of their herds against liver fluke, and improve future Norman Lamb: The Department is aware that there yield. The figure for April 2010 to April 2012 has been are sponsorship arrangements in place between individual included for reference. national health service trusts and manufacturers of stoma products, in particular to support the employment Maternity Services: Immigrants of specialist stoma nurses. The Department does not collect information on which NHS trusts have these Mr Leech: To ask the Secretary of State for Health arrangements or the details of them. whether it is his policy that pregnant women resident in the UK will continue to have free access to NHS Mental Health Services maternity services regardless of their immigration status. [193634] Luciana Berger: To ask the Secretary of State for Health what steps his Department has taken to ensure Jane Ellison: Currently, only women who are resident that all NHS trusts are providing the full range of in the United Kingdom on a lawful and properly settled mental health interventions recommended by the basis for the time being, or otherwise exempt from National Institute for Health and Care Excellence. charges under regulations such as asylum seekers and [194104] refugees, are entitled to have free access to national health service maternity services. Women resident here Norman Lamb: Mental health and well-being is a without permission who are not exempt from charge priority for this Government. The Mandate to NHS are chargeable for maternity services. However, guidance England makes clear that “everyone who needs it should to the NHS is clear that no woman should be refused have timely access to evidence based services”. maternity care on the basis of whether she has paid in The Health and Social Care Act (2012) places a duty advance or not. The NHS will seek to recover charges on NHS England to have regard to NICE Quality after the services have been provided where possible. Standards. Clinical commissioning groups should have Under proposals in the current Immigration Bill, regard to them in planning and delivering services, as non-European economic area nationals subject to part of a general duty to secure a continuous improvement immigration control who are applying to reside in the in quality. 577W Written Answers1 APRIL 2014 Written Answers 578W

We are investing over £400 million to give thousands Once services have been transferred, it will be for of people, in all areas of the country, access to NICE- UNHS, working with local commissioners, to determine approved psychological therapies. This will involve extending how to implement changes to services. This timetable and ensuring more open access to the Improving Access will be driven by a range of practical issues and the need to Psychological Therapies (IAPT) programmes, including to ensure continued provision of safe services for patients. for children and young people, for those out of work, and for older people. The IAPT programme is fundamental Joan Walley: To ask the Secretary of State for Health to the success of our drive to improve mental health (1) what extra provision is being provided by (a) University services. Hospital of North Staffordshire and (b) other hospitals to enhance services at the Trust Special Administrator-run Mid Staffordshire NHS Foundation Trust Mid Staffordshire Hospital Trust pending the outcome of the NHS England Review; and what the extra cost is of such provision; [193709] Joan Walley: To ask the Secretary of State for Health whom he has appointed to undertake the NHS England (2) what assessment he has made of the (a) financial Review into consultant-led obstetric maternity services viability and (b) medical safety of the Trust Special at Stafford Hospital; and what timetable applies for (a) Administrator-provided services at Stafford Hospital the final report and (b) decision by the Government. pending the competition of the NHS England Review; [193707] and if he will make a statement. [193710]

Jane Ellison: The next step in ensuring sustainability Dr Poulter: The services currently provided at Mid for the local health economy in Staffordshire is the Staffordshire NHS Foundation Trust (MSFT) are clinically development of fully aligned five year plans. NHS safe. However, as set out in the Trust Special Administrators’ England, NHS Trust Development Authority and Monitor draft and final reports, not all services are clinically or have jointly commissioned intensive support for both financially sustainable in the long term. commissioners and providers. The planning process will We understand that University Hospital of North conclude this summer. Staffordshire NHS Trust is providing support to services NHS England intends subsequently to commission at MSFT, including to the Accident and Emergency the review of obstetric services. A lead reviewer and Department and through the provision of nursing staff, review panel will be appointed, both of whom will be subject to local discussions. independent of NHS England and will not have been However, the Department does not hold detailed involved in the Trust Special Administrator process. information on the day to day operation of services at NHS England has not yet determined the timetable for MSFT. We have therefore written to the Trust Special the review. Administrators at MSFT, informing them of the hon. Member’s query. They will reply shortly and a copy of Joan Walley: To ask the Secretary of State for Health the letter will be placed in the Library. pursuant to the written statement of 26 February 2014, Official Report, columns 21-3WS, on Mid Staffordshire Joan Walley: To ask the Secretary of State for Health NHS Foundation Trust, (1) what his assessment is of what representations he has received in respect of the the clinical services changes which can occur ahead of situation following his acceptance in full of the Trust the NHS England Report and Government decision; Special Administrator for Mid Staffordshire Hospital [193708] Trust’s recommendation and additional decisions to (2) how long it will take for the University Hospital instigate a review of consultant-led maternity services of North Staffordshire (UHNS) NHS Trust to complete at Stafford. [193711] all contractual commitments, including transfer of undertakings from Staffordshire Hospital to UHNS; Dr Poulter: The Secretary of State’s acceptance of the [193712] Trust Special Administrators’ proposals for Mid Staffordshire NHS Trust was an important step towards (3) what the latest date is for the review to ending the long period of uncertainty experienced by report acceptance of the Trust Special Administrator the Trust. recommendations consistent with achieving University The Secretary of State has asked that local stakeholders Hospital of North Staffordshire NHS Trust responsibilities work together to implement the proposed changes. This for appropriate Stafford Hospital services by his deadline includes supporting the University Hospital of North of Autumn 2014 as specified in the statement on Staffordshire NHS Trust in the transfer of Stafford Mid-Staffordshire NHS Foundation Trust Special Hospital, and the Royal Wolverhampton Hospitals NHS Administration of 26 February 2014. [193713] Trust with the transfer of Cannock Chase Hospital. Jane Ellison: In their final report, the Trust Special We are not aware of any representations specifically Administrators recommended that Mid-Staffordshire regarding continuing uncertainty following the Secretary NHS Foundation Trust is dissolved as soon as possible. of State’s decision. At this point, Stafford Hospital will be transferred to University Hospital of North Staffordshire NHS Trust Multiple Sclerosis (UHNS). All parties are committed to completing the dissolution Mr Sanders: To ask the Secretary of State for Health and transfer as soon as possible. However the timetable how many individual funding requests for Fampridine will be driven by practical considerations and has not have been made to NHS England since April 2013; and yet been finalised. how many such requests have been approved. [193572] 579W Written Answers1 APRIL 2014 Written Answers 580W

Norman Lamb: NHS England has informed us that Number this information is not currently available. NHS England 2008-09 2009-10 2010-11 2011-12 2012-13 12013-14 is improving its data collection mechanisms and aims for this information to be available in the future. South 10 15 20 5 25 100 Tyneside Mr Sanders: To ask the Secretary of State for Health Gateshead — 10 10 5 5 0 The 70 60 510 320 210 130 what calculations were used to assess the costs and North benefits of using Fampridine to treat multiple sclerosis East patients. [193573] England 2,210 1,830 5,520 26,820 26,780 22,660 ‘—’ Indicates figure less than 5. Norman Lamb: The National Institute for Health 1 Period to October 2013. 2 Published figure. and Care Excellence (NICE) has not issued any guidance Notes: on the use of fampridine. NICE is currently updating 1. Since 2011 the Health and Social Care Information Centre (HSCIC) has its clinical guideline on the management of multiple published redundancy data so figures since 2011 have been taken from HSCIC published information. For the period before 2011, Electronic Staff Record sclerosis in primary and secondary care. The updated (ESR) data has been used which was not published. guideline will include recommendations on the 2. ESR is the human resources and payroll system that covers most NHS pharmacological management of mobility with fampridine. employees. The data used in this reply is not centrally validated and its reliability is subject to local coding practice. Redundancies are identified by staff records with a reason for leaving coded as either voluntary or compulsory Mr Sanders: To ask the Secretary of State for Health redundancy. 3. The following organisations have been identified within the geographical if he will estimate the annual cost to the (a) NHS and areas requested as follows: (b) economy of people with multiple sclerosis who South Tyneside suffer from deteriorating spasticity. [193575] South Tyneside Primary Care Trust and South Tyneside NHS Foundation Trust. Gateshead Norman Lamb: While data is available regarding annual Includes Gateshead Primary Care Trust and Gateshead Health NHS Foundation national health service spend on neurological conditions Trust. North East as a whole, spending in relation to patients with multiple Includes all organisations assigned to the North East Local Education and sclerosis suffering from deteriorating spasticity cannot Training Board on ESR. be identified. Similarly, while some cost estimates of Jarrow constituency It has not been possible to locate any organisations specifically covering the the wider impact of long-term conditions on parts of Jarrow constituency. the economy are available, these data do not identify the group of patients concerned.

NHS: Pay NHS: Re-employment

Charlotte Leslie: To ask the Secretary of State for Health what pay rise NHS employees on incremental Mr Hepburn: To ask the Secretary of State for schemes will receive if they are already at the top of Health how many National Health Service staff in (a) their banding levels. [194188] Jarrow constituency, (b) South Tyneside, (c) Gateshead, (d) the North East and (e) the UK who have been Dr Poulter: Staff on incremental schemes who, on made redundant since May 2010 have been re-employed 31 March 2014, are on the top of their pay scale will by an NHS organisation on (i) a permanent basis and receive a non-consolidated payment equivalent to 1% of (ii) a fixed-term contract basis. [193528] basic salary, payable in monthly instalments with effect from 1 April 2014. Dr Poulter: In the context of a national health service NHS: Redundancy workforce of almost 1.2 million, the number of NHS staff made redundant since May 2010 and subsequently re-employed, up until December 2013, by NHS Mr Hepburn: To ask the Secretary of State for organisations in the geographical areas specified is estimated Health how many NHS staff in (a) Jarrow constituency, in the following table. (b) South Tyneside, (c) Gateshead, (d) the North East and (e) the UK have been made redundant in each year Information is not available for NHS staff made since 2005. [193546] redundant and re-employed by NHS organisations in the Jarrow constituency as NHS organisations do not Dr Poulter: In the context of a national health service specifically cover that area. work force of almost 1.2 million, the numbers of NHS Information has been extracted from the NHS Electronic staff made redundant in four of the geographical areas Staff Record (ESR) which includes data for the NHS in since 2008-09 is provided in the following table. England only, not the United Kingdom. Information is not available for NHS staff made redundant in the Jarrow constituency as NHS organisations Region Permanent Fixed Term Total do not specifically cover that area. South 15 10 25 Information has been extracted from the NHS Electronic Tyneside Staff Record (ESR). Because ESR was not fully introduced Gateshead — 0 — until April 2008 it is not possible to provide figures North 170 140 310 before 2008-09. ESR includes data for the NHS in East England only, not the United Kingdom. England 2,630 1,420 4,050 581W Written Answers1 APRIL 2014 Written Answers 582W

‘Professional standards for hospital pharmacy services; ’—’ Indicates figure less than 5. Notes: optimising patient outcomes from medicines’. 1. ESR is the Human Resources and payroll system that covers most Health Education England will work with stakeholders NHS employees. to influence training curricula as appropriate, although 2. ESR was fully rolled out across the NHS in 2008. 3. ESR data used in this reply is not centrally validated and its the content and standard of clinical training is ultimately reliability is subject to local coding practice. Redundancies are identified the responsibility of the professional bodies. by staff records with a reason for leaving coded as either voluntary or compulsory redundancy. Roger Williams: To ask the Secretary of State for 4. Only those individuals with a leaving date of 1 May 2010 or later Health what steps the Government is taking to ensure and a hire, return, date of 31 December 2013 or earlier have been included in the total. The figure includes those who are recorded as there is a quick and easy way for a patient with having been re-employed with a substantive, either permanent or Parkinson’s disease to lodge a complaint against a fixed term, contract. It is not possible to identify management consultants hospital trust should they not receive their medicine on using ESR records. time during their stay. [194193] 5. The following organisations which use ESR have been identified within each geographical region: ″South Tyneside″ includes: South Tyneside Primary Care Trust and Dr Poulter: The Government accepts the findings by South Tyneside NHS Foundation Trust. the right hon. Member for Cynon Valley (Ann Clwyd) ″Gateshead″ includes: Gateshead Primary Care Trust and Gateshead and Professor Tricia Hart in “A Review of the NHS Health NHS Foundation Trust. Hospitals Complaints System – Putting Patients Back ″North East″ includes all organisations assigned to the North East in the Picture” that: Local Education and Training Board on ESR. 6. In a small number of cases, staff are recorded as being made vulnerable people find the complaints system complicated and redundant more than once. In such cases, only the latest redundancy hard to navigate; and is counted. Where staff have more than one start date subsequent to there is a low level of public awareness of the NHS Complaints redundancy, only the earliest date is counted. Some staff initially Advocacy Service. re-employed on a fixed term contract basis who subsequently are further employed on a permanent basis will only be counted on the We want to see every trust make clear to every patient fixed term contract basis, and vice versa. from their first encounter with the hospital: how they can complain to the hospital when things go wrong; Parkinson’s Disease who they can turn to for independent local support if they want it, and where to contact them; Cathy Jamieson: To ask the Secretary of State for that they have the right to go to the Ombudsman if they Health if he will commission national guidance on remain dissatisfied, and how to contact them; and ensuring Parkinson’s disease patients do not miss doses details of how to contact their local HealthWatch. of their medication in hospital. [193605] To support this work, the Department has set up a Complaints Programme Board. This was established in Norman Lamb: I refer the hon. Member to the answer December 2013 to bring together a range of partners I gave her on 26 March 2014, Official Report, column across the care system to implement actions that will 272W, in which it was explained that there is a range of lead to improvements in complaints handling and assist existing relevant guidance available, covering England. member organisations (for example, the Care Quality In addition, recently the Department has issued a Care Commission) to deal with poor care. Quality Commission (CQC) consultation document, ‘Introducing Fundamental Standards: Consultation on Public Health England proposals to change CQC registration regulations’. Page 24 of this document states that there should be sufficient Luciana Berger: To ask the Secretary of State for quantities of suitably accessible equipment and medicines Health what estimate he has made of the (a) fixed to ensure the safety of service users and to meet their costs and (b) annual running costs of Public Health assessed needs. Page 25 refers to taking appropriate England. [194105] steps for the proper and safe management of medicines. Also, at annex D reference is made to people getting Jane Ellison: Public Health England (PHE) does not prescribed medicines at the right time and the right currently budget or report on the split between fixed dose. A copy of the document has already been placed and non-fixed costs. In the following table shows the in the Library and is available at: budget for last year and this year, split between day to www.gov.uk/government/uploads/system/uploads/ day activity (net operating expenditure), that spent on attachment_data/file/274715/Introducing_Fundamental vaccines and countermeasures, and the local authority _Standards_-_a_Consultation.pdf (LA) grant, which is paid to LAs to exercise their public health duties. Roger Williams: To ask the Secretary of State for Health what initiatives are in place to train health 2013-14 2014-15 professionals on the importance of providing people PHE 2014-15—(cash) Grant-in-Aid (£ million) (£ million) with Parkinson’s disease medication on time while they are in hospital. [194192] Net operating expenditure 405.7 392.3 Vaccines and counter-measures 376.5 376.5 Dr Poulter: Timely delivery of medication is an issue LA public health grants 2,661.8 2,793.8 that will be considered by the National Institute for Total (cash) grant-in-aid 3,444.0 3,562.6 Health and Care Excellence and the professional bodies as part of their work on medicines optimisation. Luciana Berger: To ask the Secretary of State for In addition, there is other guidance available, such as Health how many staff are employed at Public Health that produced by the Royal Pharmaceutical Society, England. [194107] 583W Written Answers1 APRIL 2014 Written Answers 584W

Jane Ellison: As at 31 January 2014 Public Health be intimidated witnesses in relation to testifying at England employed 5,389 staff (5060,1 whole time court. However it is a matter for the court to grant the equivalents). application. Skin Cancer Emily Thornberry: To ask the Attorney-General if he will make it his policy to introduce the option of Pauline Latham: To ask the Secretary of State for anonymity for victims of female genital mutilation in Health what assessment he has made of the views of court trials. [193654] the National Institute for Health and Care Excellence on the survival benefit of dacabazine as a first line The Solicitor-General: The Crown Prosecution Service treatment for advanced melanoma; and if he will make recognises that more needs to be done to encourage a statement. [193951] victims of female genital mutilation (FGM) to come forward. The Director of Public Prosecutions (DPP) Norman Lamb: We have made no such assessment. has said that the introduction of anonymity for victims of FGM should be considered to encourage more victims to come forward as, given the very personal nature of ATTORNEY-GENERAL the offence, very few do so. However, any change of law on anonymity is a matter for the Ministry of Justice. Counterfeit Manufacturing: Money Prosecutions Tom Blenkinsop: To ask the Attorney-General pursuant to the answer of 24 March 2014, Official Report, column 40W, how many offences charged under section 14(1) Emily Thornberry: To ask the Attorney-General on and 22 of the Forgery and Counterfeiting Act 1981 how many occasions and for what offences each Crown reached a first hearing in magistrates’ court in each year Prosecution Service business area has recommended since 2008. [194028] that an offence be taken into consideration instead of charged separately in each of the last three years and in The Solicitor-General: The number of offences charged 2013-14 to date. [192878] under section 14(1) and 22 of the Forgery and Counterfeiting Act 1981 that reached a first hearing in The Solicitor-General: The Crown Prosecution Service magistrates courts in each year since 2008 are: holds no central records of the number of occasions, and for what offence(s), it has recommended that an Make a Make a offence is suitable to be taken into consideration. To counterfeit of counterfeit of obtain details would require a manual exercise of reviewing a protected a currency individual case files to be undertaken at a disproportionate coin with note with intent intent Total cost.

2008 2 22 24 Serious Fraud Office 2009 0 4 4 2010 0 4 4 2011 3 17 20 Emily Thornberry: To ask the Attorney-General for 2012 2 12 14 how many cases the Serious Fraud Office has sought 2013 2 13 15 additional funding from the Exchequer in the last two Total97281years; and on how many occasions such funding was granted (a) in part and (b) in full. [193705] Female Genital Mutilation The Solicitor-General: The Serious Fraud Office (SFO) Emily Thornberry: To ask the Attorney-General has sought additional funding in relation to three cases what steps he is taking to ensure that victims of female in the last two years, and this was granted in full on each genital mutilation whose cases go to trial have access to occasion. the full range of support and special measures that are Some additional funding has also been provided in available to victims of other sexual offences. [193653] relation to other matters as set out in the recent report of the Justice Committee on the SFO’s supplementary The Solicitor-General: The Crown Prosecution Service estimate for 2013-14. (CPS) recognises that appropriate support is vital to ensure that victims of female genital mutilation (FGM) Service Prosecuting Authority are able to give their evidence effectively in court. The CPS legal guidance advises prosecutors that in all cases of FGM they must ensure that the complainant is Emily Thornberry: To ask the Attorney-General aware of the special measures that can be applied for at when the next inspection of the Services Prosecuting court, and that applications are made in time. For all Authority is planned by HM Crown Prosecution child witnesses there is a presumption that they will give Service Inspectorate. [193655] their evidence in chief by recorded interview and any further evidence by live link unless the court is satisfied The Solicitor-General: There are currently no plans that this will not improve the quality of the child’s for HM Crown Prosecution Service Inspectorate to evidence. Adult victims of FGM are also eligible for carry out an inspection of the Service Prosecution special measures on the grounds that they are likely to Authority. 585W Written Answers1 APRIL 2014 Written Answers 586W

ENERGY AND CLIMATE CHANGE With respect to Magnox fuel, the intent is to reprocess all of it. Only a finite amount of Magnox fuel remains, Argentina which limits the amount of further separated plutonium that could be produced from reprocessing. Reprocessing Henry Smith: To ask the Secretary of State for is the only approved process for managing this metal Energy and Climate Change what (a) direct and (b) fuel. indirect bilateral funding arrangements his Department With respect to Oxide Fuel management, an NDA has with governmental or non-governmental projects paper sets out the strategy which is to complete the and bodies in Argentina. [193646] reprocessing contracts in THORP, as far as is reasonably practicable, and place the remaining fuel and any future Gregory Barker: The Department does not at present arisings into interim storage pending disposal. The paper provide bilateral funding to Argentina. can be found at: Energy: Prices http://www.nda.gov.uk/documents/upload/Oxide-Fuels- Preferred-Options-June-2012.pdf Tom Blenkinsop: To ask the Secretary of State for Both these strategies see the amount of plutonium Energy and Climate Change if he will urge energy separated in the future being limited in line with national providers to offer unconditional price freezes. [194025] requirements. Trade Unions Michael Fallon: Pricing decisions are a matter for energy suppliers. I welcome any steps by suppliers to keep energy bills down. Jonathan Ashworth: To ask the Secretary of State for Energy and Climate Change whether his Department is Nuclear Power: Security (a) undertaking or (b) plans to undertake a review of the check-off union subscription provision. [194038] Paul Flynn: To ask the Secretary of State for Energy and Climate Change what steps the Government plans Gregory Barker: The Secretary of State for Energy to take to deliver the commitments on nuclear security and Climate Change, my right hon. Friend the Member contained in paragraph 27 of the Hague Nuclear for Kingston and Surbiton (Mr Davey), reviewed the Security summit communiqué held in the Hague on 24 situation on 23 January 2014. and 25 March 2014. [193687]

Michael Fallon: Safety and security are top priorities SCOTLAND for the Government and there is a robust security framework in place for the civil nuclear industry. We All Party Groups seek continuous improvement in line with internationally established principles. The UK has a strong and effective Chris Ruane: To ask the Secretary of State for independent regulator, the Office for Nuclear Regulation Scotland what his Department’s policy is on allowing (ONR), which ensures compliance with the requirements officials to appear before all-party parliamentary groups. placed on duty holders by the Nuclear Industries Security [193564] Regulations 2003 (as amended) and the performance-based National Objectives, Requirements and Model Standards David Mundell: I refer the hon. Gentleman to the (NORMS). There is extensive engagement between the answer given by the Minister for the Cabinet Office and Government, ONR and duty holders. The full set of Paymaster General, my right hon. Friend the Member UK commitments made at the Nuclear Security summit for Horsham (Mr Maude), on 26 March 2014, Official which go towards meeting paragraph 27 of the summit’s Report, column 300W. communiqué can be found at the following link: https://www.nss2014.com/sites/default/files/documents/ 140321_uk_national_statement_on_commitments.pdf CULTURE, MEDIA AND SPORT Plutonium Broadband: South West Paul Flynn: To ask the Secretary of State for Energy and Climate Change what steps the Government plans Mr Sanders: To ask the Secretary of State for to take to deliver the commitments on nuclear security Culture, Media and Sport what targets have been set contained in paragraph 21 of the Hague Nuclear for the rollout of superfast broadband in Devon and Security summit communiqué of the Nuclear Security Somerset; and whether Broadband Delivery UK has summit held in the Hague on 24 and 25 March 2014 to met those targets. [193602] keep the national stockpile of separated plutonium to the minimum level. [193688] Mr Vaizey: The Government has allocated £54.72 million to support improvements to superfast broadband coverage Michael Fallon: The Nuclear Decommissioning Authority in Devon and Somerset as part of its commitment to (NDA) has published strategies for the management of ensure 95% of the UK has access to superfast broadband spent Magnox and Oxide fuel; it is from these spent by 2017. It has not set specific coverage target for fuels that plutonium is separated. These strategies individual projects. In addition, the recently published are aligned with UK Government policy and their Ofcom European Broadband Scorecard shows that the implementation is expected to see cessation of reprocessing UK now has the best broadband among the major in Magnox and THORP facilities during this decade. economies in Europe, a year ahead of target. 587W Written Answers1 APRIL 2014 Written Answers 588W

NORTHERN IRELAND TRANSPORT Cycleways All Party Groups Stephen Barclay: To ask the Secretary of State for Chris Ruane: To ask the Secretary of State for Transport what recent estimate his Department has Northern Ireland what her Department’s policy is on made of the cost per mile of building cycle lanes; and allowing officials to appear before all-party parliamentary what steps he is taking to reduce this cost in rural areas. groups. [193563] [194267]

Mrs Villiers: I refer the hon. Gentleman to the answer Mr Goodwill: The Department does not estimate the given by the Minister for the Cabinet Office and Paymaster cost per mile of building cycle lanes. Cycling infrastructure General, my right hon. Friend the Member for Horsham varies in design and cost due to the location and scheme (Mr Maude), on 26 March 2014, Official Report, column design. The provision of cycling facilities is a matter for 300W. local authorities and as such they are best placed to determine the spend per mile for building cycle lanes. Working Hours The Department does provide best practice information in cycle infrastructure design through its publication “Cycle infrastructure Design” (Local Transport Note Lucy Powell: To ask the Secretary of State for 2/08). The Department encourages local authorities, Northern Ireland what proportion of employees in her both in urban and rural areas, to obtain best value in Department of what (a) Civil Service pay grade and the provision of highways infrastructure. (b) gender work (i) reduced hours, (ii) flexi-time, (iii) from home, (iv) a compressed working week, (v) job Driver and Vehicle Agency share, (vi) term-time only and (vii) part-time. [193970] Mr Gregory Campbell: To ask the Secretary of State Mrs Villiers: The figures for staff in my Department for Transport if he will take steps to ensure people who falling under these work patterns by grade and gender are currently employed by the Driver and Vehicle are as follows: Agency receive training to enable them to take up local (i) Zero; posts in other Government departments and public bodies.. [193762] (ii) Flexi-time is granted under local arrangements between line managers and their staff and the details are not held centrally; Stephen Hammond: Department for Transport officials (iii) None of the staff in my Department work from home on a are working with those in Northern Ireland to support full time basis; any Driver and Vehicle Agency (DVA) staff who might (iv) Band A 9% male; need to learn new skills to secure alternative employment. (v) No one in my Department job shares; An initial meeting has taken place to discuss the details. (vi) Band B (SEO) 8% female; Officials will continue to work together to ensure appropriate (vii) Figures for part time working in my Department are given support is given to staff at the DVAduring the transition as follows: period.

Percentage High Speed 2 Railway Line Male Female Andrea Leadsom: To ask the Secretary of State for Band A 9 — Transport if he will update the business case for High Band B 14 — Speed 2 to reflect the fact that there will be no link with Band C — — High Speed 1. [194270] Band D — 8 Band E — 33 Mr Goodwill: We will continue to revise and update Band F — 22 the economic case for HS2 as new project milestones are reached, such as decisions on the preferred route for Phase 2, to ensure it is based on the best available evidence and latest understanding of the project, including BUSINESS, INNOVATION AND SKILLS taking account of the decision to remove the existing proposals for the HS1-HS2 link from the scheme. Barclays Northern Rail

Mr Godsiff: To ask the Secretary of State for Mary Creagh: To ask the Secretary of State for Business, Innovation and Skills what assessment his Transport what the (a) net franchise payment, (b) revenue Department has made of the policy of Barclays on the support sum and (c) net subsidy are for the 22 month direct award of the northern franchise to Northern Rail use of tax havens. [193463] Ltd. [194113]

Mr Gauke: I have been asked to reply on behalf of Stephen Hammond: For the 22 month Northern franchise the Treasury. direct award there is no revenue support mechanism I am unable to comment on the tax affairs of individual and there is a £632.7 million contracted subsidy over companies. the full period of the franchise. 589W Written Answers1 APRIL 2014 Written Answers 590W

Railway Stations Road Traffic Andrew Rosindell: To ask the Secretary of State for Heidi Alexander: To ask the Secretary of State for Transport what steps he plans to take to relieve congestion Transport when he plans to announce which stations on roads. [193669] will receive (a) access for all funding and (b) national station improvement programme funding between 2014 Mr Goodwill: This Government is committed to investing and 2019. [194262] in infrastructure to reduce traffic congestion. This means spending £24 billion on strategic roads over this and the Stephen Hammond: We plan to announce the stations next Parliament, and accelerating the pace of delivery that will receive Access for All funding in April. so that people affected see a difference more quickly. This includes a £500 million programme of pinch The responsibility for deciding which stations will point schemes specifically targeted at tackling congestion benefit from the next phase of the National Stations on both the strategic and local road network, and a Improvement Programme rests with the industry Local further £800 million being invested in 25 local major Delivery Groups (LDGs) and not the Department. road schemes. The LDGs are in the process of developing their We have previously announced £183.5 million for plans and will in due course be able to confirm which road repairs following the severe weather this winter schemes they are progressing. and in the recent Budget, the Chancellor of the Exchequer, my right hon. Friend the Member for Tatton (Mr Osborne), Railway Stations: Kent announced a further £200 million funding for pothole repairs. Of this, £168 million will assist councils in England, with the remaining £32 million allocated to Heidi Alexander: To ask the Secretary of State for the devolved administrations. Transport how much has been spent by his Department on platform lengthening on the Integrated Kent Franchise Roads: Repairs and Maintenance routes in each year since 2000, by station. [194264] Robert Halfon: To ask the Secretary of State for Transport how much money has been spent on Stephen Hammond: It is Network Rail who has funded repairing potholes in (a) Harlow and (b) Essex since and delivered the platform lengthening on the Integrated 2004. [193871] Kent Franchise routes. The Department has no detailed information on individual station costs. Mr Goodwill: The Department for Transport provides capital funding to local highway authorities, including Railways: Tickets Essex county council, from the local highways maintenance capital block grant. Harlow falls within Essex county council’s area of responsibility and therefore we do not Mary Creagh: To ask the Secretary of State for allocate any funds directly to the borough council for Transport what discussions his Department has had road maintenance. with Transport for London on the South East Flexible Since 2004 the Department has allocated the following Ticketing scheme. [194128] amounts to Essex for highway maintenance:

Stephen Hammond: As a key delivery partner for the £ million South East Flexible Ticketing (SEFT) programme, Transport for London are a signatory to the SEFT 2004-05 12.626 Memorandum of Understanding and have membership 2005-06 15.782 of the SEFT Programme Board. This is intended to 2006-07 16.682 ensure that their extensive experience of developing 2007-08 22.428 smart ticketing in London is fully utilised in delivering 2008-09 20.706 the SEFT programme. 2009-10 21.361 TfL has therefore been fully involved in all significant 2010-11 20.959 discussions on the strategic direction, design and delivery 2011-12 20.728 of SEFT. Significant work has also been carried out 2012-13 19.838 with them to ensure that the scheme will interoperate 2013-14 122.482 properly with their existing infrastructure in central 2014-15 119.873 London, including system testing. 1 Includes the top up announced in the 2012 autumn statement. The Department also allocated additional funding to Rescue Services authorities to help repair roads damaged by various weather events and this included a further £2.116 million to Essex county council in 2010-11 and £5.301 million Angus Robertson: To ask the Secretary of State for in March 2011. More recently the Department for Transport what assets he has designated for search and Transport has agreed to allocate over £2.7 million due rescue under section 2.5 of Annex 12 of the to the severe wet weather the country has encountered. Convention on International Civil Aviation; and where A £200 million Pothole Fund was announced in the each such asset is located. [194243] Budget on 19 March 2014. From this, £168 million is being made available to councils in England through a Stephen Hammond: I refer the hon. Member to my bidding exercise. Further details on the fund will be answer of 2 September 2013, Official Report, column 153W. made available in the coming weeks. 591W Written Answers1 APRIL 2014 Written Answers 592W

Local authorities are also able to use revenue funding Trade Unions allocated by the Department for Communities and Local Government through the Revenue Support Grant for Jonathan Ashworth: To ask the Secretary of State for maintaining their local highways. Neither capital nor Transport whether his Department is (a) undertaking revenue highways maintenance funding is ring-fenced or (b) plans to undertake a review of the check-off and it is for local highway authorities to decide upon union subscription provision. [194047] their spending priorities across the whole range of services they provide. Stephen Hammond: The Department for Transport is The Department for Transport does not centrally undertaking a review. hold information on what proportion of this funding is spent by Essex county council on repairing potholes. Working Hours

Southeastern Lucy Powell: To ask the Secretary of State for Transport what proportion of employees in his Heidi Alexander: To ask the Secretary of State for Department of what (a) Civil Service pay grade and Transport on what date he expects all peak services (b) gender work (i) reduced hours, (ii) flexi-time, (iii) provided by Southeastern to be formed of 12 car trains. from home, (iv) a compressed working week, (v) job [194263] share, (vi) term-time only and (vii) part-time. [193973]

Stephen Hammond: We do not expect all peak services Stephen Hammond: The total number of employees provided by Southeastern to be formed of 12 car trains in the Department and its agencies split by gender is as as demand on some routes does not require this level of follows: capacity provision. It is for the train operating company Female—6,924 running the service to best match its rolling stock with Male—9,768 passenger demand. The following tables provide the information requested. Through the Government’s Rail Investment Strategy, Where numbers are 5 or less, we have withheld the we are investing in additional capacity across the country, precise number on grounds of confidentiality in line for where it is most needed. with the Data Protection Act.

DFT Centre: Female Total in headcount Reduced From Compressed Term-time Grade (ONS) hours1 Flexi time1 home1 working week Job share only Part time

PB1 (AA) 0 — — — 0 0 0 0 PB2 (AO) 77 — — — 0 0 0 11 PB3 (EO) 95 — — — 0 6 0 18 PB4(HEO) 162 — — — 0 0 0 21 PB5 (SEO) 80 — — — 0 0 0 14 PB6 (Grade 7) 169 — — — 0 7 0 34 PB7 (Grade 6) 52 — — — 0 <5 0 21 SCS 40 — — — 0 <5 0 8

DFT Centre: Male Total in headcount Reduced From Compressed Term-time Grade (ONS) hours1 Flexi time1 home1 working week1 Job share1 only1 Part time1

PB1 (AA) <5 — — — 0 0 0 0 PB2 (AO) 95 — — — 0 <5 0 18 PB3 (EO) 129 — — — 0 0 0 6 PB4 (HEO) 255 — — — 0 <5 0 <5 PB5 (SEO) 191 — — — 0 0 0 7 PB6 (Grade 7) 288 — — — 0 <5 0 16 PB7 (Grade 6) 138 — — — 0 <5 0 9 SCS 81 — — — 0 <5 0 <5

Driver and Vehicle Standards Agency: Female Total in headcount Reduced Compressed Term-time Grade (ONS) hours Flexi time From home working week Job share only Part time

PB1 (AA) 121 38 44 0 <5 0 <5 68 PB2 (AO) 441 42 119 0 28 0 12 137 PB3 (EO) 534 109 60 0 9 0 14 147 PB4 (HEO) 144 11 51 0 13 0 <5 22 PB5 (SEO) 60 7 32 0 <5 0 0 9 PB6 (Grade 7) 17 <5 0 0 <5 0 0 <5 593W Written Answers1 APRIL 2014 Written Answers 594W

Driver and Vehicle Standards Agency: Female Total in headcount Reduced Compressed Term-time Grade (ONS) hours Flexi time From home working week Job share only Part time

PB7 (Grade 6) <5 0 0 0 0 0 0 0 SCS <5 0 0 0 0 0 0 0

Driver and Vehicle Standards Agency: Male Total in headcount Reduced Compressed Term-time Grade (ONS) hours Flexi time From home working week Job share only Part time

PB1 (AA) 60 <5 9 0 8 0 0 10 PB2 (AO) 636 <5 65 0 7 0 0 31 PB3 (EO) 2,042 224 36 0 9 0 7 252 PB4 (HEO) 316 <5 42 0 <5 0 0 8 PB5 (SEO) 119 <5 23 0 7 0 0 <5 PB6 (Grade 7) 57 <5 0 0 <5 0 0 <5 PB7 (Grade 6) 15 0 0 0 0 0 0 0 SCS <5 0 0 0 0 0 0 0

Driver and Vehicle Licensing Agency: Female Total in headcount Flexi Compressed Term-time Grade (ONS) Reduced hours time From home working week Job share only Part time

PB1 (AA) 1,075 0 1075 0 <5 0 17 566 PB2 (AO) 1,599 0 1599 0 <5 0 6 633 PB3 (EO) 428 0 428 0 <5 0 <5 120 PB4 (HEO) 206 0 206 0 <5 0 0 41 PB5 (SEO) 107 0 107 0 <5 0 0 23 PB6 (G7) 37 0 0 0 <5 0 0 <5 PB7 (G6) 21 0 0 0 <5 0 0 <5 SCS <5 0 0 0 0 0 0 0

Driver and Vehicle Licensing Agency: Male Total in headcount Compressed Term-time Grade (ONS) Reduced hours Flexi time From home working week Job share only Part time

PB1 (AA) 624 0 624 0 <5 0 <5 102 PB2 (AO) 852 0 852 0 <5 0 0 55 PB3 (EO) 298 0 298 0 <5 0 0 15 PB4 (HEO) 163 0 163 0 <5 0 0 9 PB5 (SEO) 113 0 113 0 0 0 0 <5 PB6 (G7) 46 0 0 0 0 0 0 <5 PB7 (G6) 25 0 0 0 0 0 0 <5 SCS <5 0 0 0 0 0 0 0

Highways Agency: Female Total in headcount From Compressed Term-time Grade (ONS) Reduced hours1 Flexi time home1 working week Job share1 only Part time

PB1 (AA) <5 — <5 — 0 — 0 0 PB2 (AO) 131 — 131 — <5 — <5 40 PB3 (EO) 183 — 183 — 6 — <5 48 PB4 (HEO) 142 — 142 — 6 — 0 33 PB5 156 — 156 — <5 — 0 37 PB6 (SEO) 142 — 142 — 5 — <5 30 PB7 (Grade 7) 62 — <5 — 8 — 0- 9 PB8 (Grade 6) 13 — 0 — <5 — 0 <5 Traffic Officers 229 — 0 — 0 — 0 28 SCS <5 — 0 — 0 — 0 0

Highways Agency: Male Total in headcount From Compressed Term-time Grade (ONS) Reduced hours1 Flexi time home1 working week Job share1 only Part time

PB1 (AA) 0 — 0 — 0 — 0 0 595W Written Answers1 APRIL 2014 Written Answers 596W

Highways Agency: Male Total in headcount From Compressed Term-time Grade (ONS) Reduced hours1 Flexi time home1 working week Job share1 only Part time

PB2 (AO) 87 — 87 — 0 — 0 10 PB3 (EO) 154 — 154 — <5 — 0 15 PB4 (HEO) 112 — 112 — <5 — 0 7 PB5 195 — 195 — <5 — 0 10 PB6 (SEO) 377 — 377 — 12 — 0 31 PB7 (Grade 7) 178 — 10 — 11 — 0 13 PB8 (Grade 6) 54 — <5 — 0 — 0 <5 Traffic Officers 1,202 — 0 — 0 — 0 65 SCS 28 — 0 — 0 — 0 <5

Vehicle Certification Agency: Female Total in headcount Reduced Compressed Term-time Grade (ONS) hours Flexi time From home working week Job share only Part time

PB1 (AA) <5 — <5 0 0 — 0 <5 PB2 (AO) 18 — 11 0 <5 — <5 9 PB3 (EO) 16 — 12 <5 <5 — <5 6 PB4 (HEO) <5 — 6 0 0 — 0 <5 PB5 (SEO) <5 — <5 0 0 — 0 0 PB6 (G7) <5 — 0 0 0 — 0 0 PB7 (G6) 0 — 0 0 0 — 0 0 SCS 0 — 0 0 0 — 0 0

Vehicle Certification Agency: Male Total in headcount Reduced From Compressed Term-time Grade (ONS) hours Flexi time home working week Job share only Part time

PB1 (AA) <5 — <5 0 0 — 0 0 PB2 (AO) 17 — 15 0 0 — 0 <5 PB3 (EO) 20 — 6 <5 <5 — 0 <5 PB4 (HEO) 39 — <5 <5 <5 — 0 0 PB5 (SEO) 32 — <5 <5 <5 — 0 <5 PB6

Maritime and Coastguard Agency: Female Total in headcount Reduced Flexi From Compressed Term-time Grade (ONS) hours1 time1 home1 working week1 Job share1 only1 Part time

PB1 (AA) 24 — — — — — — 7 PB2 (AO) 165 — — — — — — 52 PB3 (EO) 74 — — — — — — 14 PB4 (HEO) 42 — — — — — — 17 PB5 (SEO) 25 — — — — — — <5 PB6 (G7) 16 — — — — — — <5 PB7 (G6) <5 — — — — — — 0 SCS <5 — — — — — — 0

Maritime and Coastguard Agency: Male Total in headcount Reduced Flexi From Compressed Term-time Grade (ONS) hours1 time1 home1 working week1 Job share1 only1 Part time

PB1 (AA) 43 — — — — — — <5 PB2 (AO) 180 — — — — — — 9 PB3 (EO) 153 — — — — — — <5 PB4 (HEO) 94 — — — — — — 9 PB5 (SEO) 142 — — — — — — 19 PB6 (G7) 76 — — — — — — 6 PB7 (G6) 15 — — — — — — 0 SCS <5 — — — — — — <5 1 Information not held centrally. 597W Written Answers1 APRIL 2014 Written Answers 598W

ENVIRONMENT, FOOD AND RURAL AFFAIRS Flood Control

All Party Groups Maria Eagle: To ask the Secretary of State for Environment, Food and Rural Affairs pursuant to his answer of 24 March 2014, Official Report, column 33W, Chris Ruane: To ask the Secretary of State for on flood control, what the reasons are for the disparity Environment, Food and Rural Affairs what his between the figures given in that answer and those Department’s policy is on allowing officials to appear contained in the Red Book Table 2.1 Line 34 for 2014-15 before all-party parliamentary groups. [193556] and 2015-16. [194187] Dan Rogerson: I refer the hon. Member to the answer Dan Rogerson: The figures that I provided in my given by the Minister for the Cabinet Office and Paymaster answers of 24 March 2014, Official Report, column General, the right hon. Member for Horsham (Mr Maude), 33W, relate to increases in Government funding for on 26 March 2014, Official Report, column 300W. flood defence in England announced in the Budget 2014. Birds: Falkland Islands The figures in the Red Book Table 2.1 Line 34 for 2014-15 and 2015-16 include consequential funding for the devolved administrations. The presentation of these Dr Offord: To ask the Secretary of State for figures is consistent with the rest of the table and the Environment, Food and Rural Affairs for what reasons standard way of presenting fiscal costs in Budgets. his Department supported an officer in the Falkland Islands responsible for implementing the Agreement on Floods: EU Grants and Loans the Conservation of Albatrosses and Petrels on behalf of the Overseas Territories. [192763] Alison Seabeck: To ask the Secretary of State for Environment, Food and Rural Affairs what George Eustice: Joint UK and South Atlantic Overseas representations he has made to the EU Commission on Territories funding has supported a co-ordinating post the UK applying for and drawing down monies from based in the Falkland Islands since 2008 to, among the European Solidarity Fund following the recent other things, help meet obligations arising from the flooding and storm damage; and what the deadline is Agreement on the Conservation of Albatrosses and for making any such bid. [188600] Petrels (ACAP), a daughter agreement to the Convention Dan Rogerson: EU Solidarity Fund money is available on Migratory Species. ACAP has been extended to the to all member states suffering from large-scale natural UK’s South Atlantic Territories. DEFRA currently disasters, but is subject to a number of eligibility contributes £20,000 per year. requirements, including on the level of direct damages. ACAP seeks to conserve albatrosses and petrels by Comparing the damage today to the 2007 floods, and co-ordinating international activity to mitigate known following contact with the Commission, the Government’s threats. Collectively, the UK’s South Atlantic Overseas assessment was that we had not met these conditions. Territories are breeding range states for 12 of the 30 The regulation governing the EUSF sets the deadline species currently listed by the Agreement. The ACAP for applications as 10 weeks after the first damage co-ordination project was established to ensure coherence caused by the disaster. of action between the territories, assist with the planning and implementation of albatross and petrel conservation Floods: Somerset work, take responsibility for the reporting requirements and lead on critical seabird by-catch mitigation work in Maria Eagle: To ask the Secretary of State for international fisheries fora. Environment, Food and Rural Affairs what assessment he has made of whether the estimated cost of the direct damage caused by recent flooding in Somerset meets Bovine Tuberculosis: Republic of Ireland the eligibility criteria for the European Union Solidarity Fund; and what discussions his Department has had Huw Irranca-Davies: To ask the Secretary of State with EU officials on an application to that fund. for Environment, Food and Rural Affairs what [194106] evidence his Department has collected on the effect of badger culls conducted in Ireland on levels of bovine Dan Rogerson: EU Solidarity Fund money is available TB in that country. [193609] to all member states suffering from large-scale natural disasters, but is subject to a number of eligibility George Eustice: The number of bovine TB reactors in requirements, including on the level of direct damages. the Republic of Ireland fell by over 65% between 1999 Comparing the damage today to the 2007 floods, and and 2013, from 44,903 to 15,612. This represents the following contact with the Commission, the Government’s lowest level since the eradication programme started in assessment was that we had not met these conditions. the 1950s. The Department of Agriculture, Food and The regulation governing the EUSF sets the deadline the Marine’s wildlife policy statement of April 2013 for applications as 10 weeks after the first damage concludes that it is satisfied that the culling of infected caused by the disaster. badgers, which is underpinned by research studies and Hunting Act 2004 sound science, has led to a significant reduction in the incidence of TB in cattle over the past decade. Mr Gregory Campbell: To ask the Secretary of State http://www.agriculture.gov.ie/animalhealthwelfare/ for Environment, Food and Rural Affairs what plans diseasecontrol/bovinetbbrucellosiseradicationschemes/ he has to bring forward legislative proposals to amend wildlifepolicybadgers/ the Hunting Act 2004. [194121] 599W Written Answers1 APRIL 2014 Written Answers 600W

George Eustice: The Government has no legislative George Eustice: Non-native wildlife specimens (including plans to make an amendment to the Hunting Act 2004. plants) may be retained for various reasons by the However, the Government’s position remains that we police, UK Border Force (UKBF), Royal Botanic Gardens will bring forward a motion for a free vote on the repeal Kew (RBG Kew), local authorities and other organisations of the Hunting Act when parliamentary time allows. such as the RSPCA. RBG Kew has a Plant Quarantine Unit and keeps Maria Eagle: To ask the Secretary of State for records of all plant material entering its collections but Environment, Food and Rural Affairs whether he has not records of confiscated specimens that are returned allocated staff resources or established a dedicated unit to the people or location they were confiscated from. in his Department to deal with proposed amendments UKBF re-homes seized wildlife after having consulted to the Hunting Act 2004. [194165] with the Joint Nature Conservation Committee, the UK’s CITES scientific authority for fauna, on appropriate George Eustice: Some departmental staff time has location. It has not been UK practice to return wildlife been used to look into the issues raised by Welsh to countries of export as there is no guarantee of its farmers about lamb predation by foxes and the stalking return to the wild or that it will not re-enter illegal trade. and flushing out exemption of the Hunting Act 2004. UKBF does not disclose publically the locations where This has not involved establishing a unit dedicated to seized items are held. All seized animals remain the this issue within the Department. Staff resources are property of the crown. allocated to look into issues as they arise on a flexible No police-run facilities exist for the retention and basis. The Government has no plans to bring forward care of non-native wildlife species confiscated in the legislation to make amendments to the Hunting Act UK: each case is dealt with on an ad-hoc basis. Information 2004 this Parliament. about returned specimens is not held centrally. DEFRA does not hold information about holding facilities used by local authorities and other organisations. Land Drainage Slaughterhouses Mr Laurence Robertson: To ask the Secretary of State for Environment, Food and Rural Affairs Mike Freer: To ask the Secretary of State for pursuant to the answer of 26 February 2014, Official Environment, Food and Rural Affairs if he will Report, column 558W, on land drainage, what funding commission a study on measures to accurately record will be made available to SuDS Approving Bodies to incidences of mis-stunning in abattoirs. [193828] enable them to maintain balancing tanks and sustainable urban drainage systems; who will be George Eustice: The Food Standards Agency already responsible for providing that funding; and if he will records instances of mis-stunning in slaughterhouses; make a statement. [193909] so a study in this area is unnecessary. Details were given by the Minister for Public Health on 24 March 2014, Dan Rogerson: The Department will be consulting Official Report, columns 132-34W: shortly on funding arrangements for the maintenance http://www.publications.parliament.uk/pa/cm201314/ of sustainable drainage systems (SUDS) that will be cmhansrd/cm140324/text/140324w0005.htm#14032581000879 subject to the provisions of schedule 3 of the Flood and Water Management Act 2010.

Mr Laurence Robertson: To ask the Secretary of FOREIGN AND COMMONWEALTH OFFICE State for Environment, Food and Rural Affairs pursuant to the answer of 26 February 2014, Official Argentina Report, column 358W, on land drainage, for what reasons responsibility for maintaining balancing tanks Henry Smith: To ask the Secretary of State for and sustainable urban development systems is to be Foreign and Commonwealth Affairs pursuant to the given to county or unitary authorities rather than to answer of 28 February 2014, Official Report, column local planning authorities; and if he will make a 525W, on Argentina, how much his Department has statement. [193910] spent under each cost heading in each of the last three years. [193652] Dan Rogerson: County and unitary authorities are the lead local flood authorities for their areas. Mr Swire: The development aid provided to the Government of Argentina is published with all UK aid spend on the website of the Department for International Nature Conservation: Crime Development on: https://www.gov.uk/government/topics/international-aid-and- development Angela Smith: To ask the Secretary of State for Environment, Food and Rural Affairs what facilities an annual basis. exist for the retention and care of non-native wildlife Figures for 2013 will be published in autumn 2014. species confiscated in the UK; where those facilities are We currently forecast this to be much lower than previous located; and how many times such non-native wildlife years, due to the strict criteria now applied to the species confiscated have been returned to the people or Foreign and Commonwealth Office’s programme work location where they were first confiscated. [193703] in Argentina. 601W Written Answers1 APRIL 2014 Written Answers 602W

Commonwealth outside HM Government contributed written proposals for inclusion in the UK’s statements. There were discussions Jake Berry: To ask the Secretary of State for Foreign between officials and the following organisations as the and Commonwealth Affairs what steps he has taken to UK’s contributions were being formulated: National increase the number of UK embassies and consulates Skills Academy Nuclear; World Institute of Nuclear through co-operation with Commonwealth governments. Security; International Atomic Energy Agency; Kings [193531] College London; Vertic; and EU Joint Research Centre.

Mr Lidington: We are committed to strengthening our relationship with our Commonwealth partners and Venezuela believe co-location of our embassies, where it is of mutual benefit, supports closer co-operation, as well as Kerry McCarthy: To ask the Secretary of State for leading to efficiency savings. We are currently co-located Foreign and Commonwealth Affairs what steps the with Canada in Rangoon, Port-au-Prince, Baghdad and UK is taking to promote peaceful dialogue in Bamako, with New Zealand in Kabul and Bridgetown, Venezuela between the government and of that country and with Australia in Beirut and Vientiane. A number and political opponents. [194197] of other co-location projects with these Commonwealth partners are in the pipeline. Mr Swire: As I said in my statement of 26 March, I Gibraltar: Spain am deeply concerned about the situation in Venezuela. I am saddened by the deaths that have occurred, and condemn all acts of violence. Andrew Rosindell: To ask the Secretary of State for Foreign and Commonwealth Affairs (1) whether he has We have called for all sides to take steps to avoid been informed that the Alcaidesa marina in La Linea confrontation, reduce tensions and to create the right has been partly constructed in British-Gibraltar conditions for genuine dialogue to take place. I have Territorial Waters; [193673] written to the Venezuelan Government to convey this message and offered the UK’s assistance in the reconciliation (2) how much of the Alcaidesa marina in La Linea process. I have spoken to ministerial colleagues in the has been constructed in British-Gibraltar territorial region, both during my visit to South America and waters; [193674] during the Union of South .American Nations (UNASUR) (3) what representations his Department made to the commission’s visit, to encourage their governments to Spanish government on the Alcaidesa marina in La help promote dialogue in Venezuela. Our embassy in Linea; when such representations were made and by Caracas urges peaceful dialogue through its contacts whom; and what further steps he intends to take on this with a range of actors in Venezuelan society. issue. [193675] A commission of foreign ministers from the UNASUR group of countries visited Caracas 26-27 March to Mr Lidington: The Secretary of State for Foreign and support and advise on dialogue between the parties. I Commonwealth Affairs, my right hon. Friend the Member welcome this positive first visit which involved meetings for Richmond (Yorks) (Mr Hague) and I have been with a range contacts, including with President Maduro, informed that less than 0.0001 square miles of Alcaidesa opposition leaders and civil society representatives. marina encroaches on British Gibraltar Territorial Waters (BGTW). My reply given to the hon. Member on 5 March 2014, Official Report, column 837W, noted Working Hours that construction of the mole/sea wall and Alcaidesa marina in La Linea are historical fact. The mole was completed in the 1980s and the marina in 2008. A note Lucy Powell: To ask the Secretary of State for verbale protesting the construction of the mole was Foreign and Commonwealth Affairs what proportion issued in 1982. Earlier this year officials checked the of employees in his Department of each (a) Civil records for 2008 and found no record of a protest at the Service pay grade and (b) gender work (i) reduced completion of the marina. This Government has made hours, (ii) flexi-time, (iii) from home, (iv) a compressed our position on sovereignty over BGTW clear to the working week, (v) job share, (vi) term-time only and Government of Spain, including recently at a senior (vii) part-time. [193964] level. Hugh Robertson: Under the Foreign and Commonwealth Nuclear Security Summit Office’s (FCO) flexible working policy, all staff can request to work flexibly. Many FCO staff in the UK Paul Flynn: To ask the Secretary of State for Foreign and overseas have agreed successful flexible working and Commonwealth Affairs pursuant to the answer of patterns with their line managers. 25 March 2014, Official Report, column 189W, on the Nuclear Security Summit, which organisations made The FCO has been improving the management what suggestions to the UK’s contribution to that information system that staff use to record their flexible Summit. [193807] working patterns. This is a voluntary declaration and the current low level of declarations means there is not Hugh Robertson: The UK contributed three statements yet sufficient data to give a meaningful breakdown to the Nuclear Security Summit: a National Statement, of all working patterns. According to the system, on a Progress Report and a Statement on the UK led 28 February 2014, there are 192 UK based staff, i.e. not Information Security initiative. All three statements are including our locally engaged staff in our overseas publically available on the NSS website. No body from posts, who are working part-time. 603W Written Answers1 APRIL 2014 Written Answers 604W

WORK AND PENSIONS Notes: 1. Figures are rounded to the nearest 100. 2. The outcome recorded is the final DWP Decision Maker’s decision All Party Groups or the recommendation made by the Atos Healthcare Professional where the Decision Maker’s decision is not yet available. 3. The data presented above comes from benefit claims data held by Chris Ruane: To ask the Secretary of State for Work the Department for Work and Pensions. It related to new and repeat and Pensions what his Department’s policy is on ESA claims and Incapacity Benefit (IB) claims reassessments, In allowing officials to appear before all-party parliamentary October 2008, ESA replaced IB for new claims. Starting with a trial in October 2010, and reaching a full scale national roll-out in April groups. [193568] 2011, existing IB claims began to be phased out, with claimants reassessed to see if they qualify for ESA instead. Esther McVey: I refer the hon. Member to the reply Source: Data in the table above is derived from administrative data held by the given to PQ 193382 by the Minister for the Cabinet DWP and assessment data provided by Atos Healthcare. Office and Paymaster General, my right hon. Friend the Member for Horsham (Mr Maude), on 26 March 2014, The reassessment of existing incapacity benefits claimants Official Report, column 300W. started in October 2010 with a trial in the Burnley and Aberdeen areas. These are included in the table. Atos Healthcare Stephen Timms: To ask the Secretary of State for Work and Pensions (1) how many repeat employment Sheila Gilmore: To ask the Secretary of State for and support allowance claimants have been placed in Work and Pensions pursuant to the ministerial the work-related activity group with the prognosis that statement of 27 March 2014, Official Report, columns engagement in work is unlikely in the longer term since 56-8WS, on Atos, how much Atos has paid to his October 2008; [194166] Department in order to exit its contract early; and (2) how many new employment and support whether he plans for the new contract provide for allowance claimants have been placed in the work- payments calculated on the number of assessments related activity group with the prognosis that completed. [194148] engagement in work is unlikely in the longer term since October 2008. [194167] Mike Penning: The terms of the financial settlement are confidential between the parties. Mike Penning: The information requested to answer The Department is currently developing the financial both questions are shown in the following table: model for the new contract and no decisions have been Outcomes of functional assessments by prognosis of two years or more reached. for the ESA work-related activity group, Great Britain: October 2008 to September 2013 Employment and Support Allowance WRAG: Claimants with a prognosis of two years or more

New claims—Initial assessment 11,800 Mr Mark Williams: To ask the Secretary of State for New claims—Repeat assessment 19,700 Work and Pensions for how many and what proportion Notes: of employment and support allowance claimants in the 1. Figures are rounded to the nearest 100. Work Related Activity Group Atos has sought further 2. The outcome recorded is the final DWP Decision Maker’s decision medical evidence and opinion from the person’s or the recommendation made by the Atos Healthcare Professional nominated professional. [193704] where the Decision Maker’s decision is not yet available. 3. The data presented above comes from benefit claims data held by the Department for Work and Pensions. It related to new and repeat Mike Penning: The information requested is not readily ESA claims. In October 2008, ESA replaced IB for new claims. available and could be provided only at disproportionate Starting with a trial in October 2010, and reaching a full scale cost. national roll-out in April 2011, existing IB claims began to be phased out, with claimants reassessed to see if they qualify for ESA instead. Source: Stephen Timms: To ask the Secretary of State for Data in the table above is derived from administrative data held by the Work and Pensions how many people who have been DWP and assessment data provided by Atos Healthcare. given a prognosis that engagement in work is unlikely Housing Benefit: Social Rented Housing in the longer term have been placed in the work-related activity group for employment and support allowance since October 2008. [193893] Chris Bryant: To ask the Secretary of State for Work and Pensions how many people in each parliamentary Mike Penning: The information requested is shown in constituency are currently incurring the under-occupancy the following table: penalty. [194189] Outcomes of functional assessments by prognosis of two years or more for the ESA work-related activity group, Great Britain: October2008 Esther McVey: The information requested is published to September 2013 and can be found at: WRAG: Claimants with a https://stat-xplore.dwp.gov.uk prognosis of two years or more Guidance on how to extract the information required New claims—Initial assessment 11,800 can be found at: New claims—Repeat assessment 19,700 https://sw.stat-xplore.dwp.gov.uk/webapi/online-help/Stat- Incapacity benefit reassessments 73,100 Xplore_User_Guide.htm 605W Written Answers1 APRIL 2014 Written Answers 606W

Incapacity Benefit Stephen Timms: To ask the Secretary of State for Work and Pensions what recent guidance his Stephen Timms: To ask the Secretary of State for Department has issued to Jobcentre Plus staff on how Work and Pensions how many people on incapacity to advise clients on alternatives to warm phones for benefit who have been given a prognosis that contacting Jobcentre Plus or applying for jobs by engagement in work is unlikely in the longer term have telephone. [194201] been placed in the work-related activity group since Esther McVey: Warm phones have in the past, been October 2010. [193896] predominately used for dealing with benefit inquiries. Following the introduction of an assisted service for Mike Penning: The information requested is shown in benefit inquiries and the removal of warm phones, we the following table: will provide controlled access to a telephone if a claimant Outcomes of functional assessments by prognosis of 2 years or more needs to make a phone call to apply for a job. for the ESA work-related activity group, Great Britain, October 2008 to September 2013 Pensions WRAG: Claimants with a prognosis of 2 years or more Gregg McClymont: To ask the Secretary of State for New claims—Initial assessment 11,800 Work and Pensions what assessment he has made of the effect of the planned changes to pensions on New claims—Repeat assessment 19,700 opt-out rates of auto enrolment. [193948] Incapacity benefit reassessments 73,100 Notes: Steve Webb: The Budget announced that from April 1. Figures are rounded to the nearest 100. 2. The outcome recorded is the final DWP decision maker’s decision 2015, the tax rules for how people access their defined or the recommendation made by the Atos Healthcare professional contribution pension savings will be simplified to allow where the decision maker’s decision is not yet available. individuals aged 55 or over to withdraw their savings 3. The data presented above comes from benefit claims data held by however they wish, subject to their marginal rate of the Department for Work and Pensions. It related to new and repeat income tax. ESA claims and incapacity benefit (IB) claims reassessments. In October 2008, ESA replaced IB for new claims. Starting with a trial in Allowing individuals to exercise greater choice over October 2010, and reaching a full scale national roll-out in April how they access their retirement savings may mean that 2011, existing IB claims began to be phased out, with claimants some people who would have previously chosen to opt reassessed to see if they qualify for ESA instead. out may no longer do so. This is more likely to have an Source: Data in the table is derived from administrative data held by the DWP effect on the choices of older workers. and assessment data provided by Atos Healthcare. Gregg McClymont: To ask the Secretary of State for The reassessment of existing incapacity benefits claimants Work and Pensions what assessment he has made of started in October 2010 with a trial in the Burnley and the effect of the planned changes to pensions on the Aberdeen areas. These are included in the table. investment strategy of the National Employment Savings Trust. [193950] Jobcentre Plus Steve Webb: The investment strategy for the National Stephen Timms: To ask the Secretary of State for Employment Savings Trust (NEST) is the responsibility Work and Pensions whether his Department collects of the NEST Trustees who will consider, if in the best information from Jobcentre Plus offices on the number interests of their members, there needs to be any change of people referred to local advice providers to use in NEST’s investment approach. telephones. [194147] Pensions Advisory Service

Esther McVey: It is not our policy to refer people to Gregg McClymont: To ask the Secretary of State for other organisations for the purposes of making a phone Work and Pensions how many people received face to call. face guidance from the Pension Advisory Service in each of the last five years. [193944] Stephen Timms: To ask the Secretary of State for Work and Pensions what guidance was given to Steve Webb: The Pensions Advisory Service provides Jobcentre Plus offices on supporting people internally information and guidance over multiple distribution rather than externally following the recent removal of channels including by telephone, web chat, online and warm phones. [194151] written enquiries and face to face via outreach activity. The outreach activity includes shows, forums and similar Esther McVey: Jobcentre plus staff continue to fully events. All guidance is tailored to the individuals’ personal support vulnerable claimants with benefit claims and circumstances. job search. All offices are introducing an assisted service The data for the last five years are set out in the when customer access phones are removed. following table:

2009-10 2010-11 2011-12 2012-13 2013-14

Helpline customers: Includes calls, online 99,663 87,712 93,505 84,228 176,348 enquiries, webchats and 1st party complaints 607W Written Answers1 APRIL 2014 Written Answers 608W

2009-10 2010-11 2011-12 2012-13 2013-14

Outreach work 26,457 7,577 3,786 1,091 31,400 1 As at 28 February. 2 People spoken to at TPAS events/presentations. 3 Estimate to date

Social Fund Mike Penning: The average waiting time for a work capability assessment in the period from March 2013 to Mr Frank Field: To ask the Secretary of State for February 2014 is as follows: Work and Pensions how many outstanding cases of social fund loan repayments his Department is Working days (number) currently pursuing; in what year each such loan was Torbay local authority area 1— issued; what estimate he has made of the total value of The South West 110 such outstanding repayments; and how much his England 71 Department is paying a debt management service to 1 The information is not available in respect of local authority areas. pursue such repayments. [194152] We announced in a written ministerial statement on 27 March our plans to achieve a reduction in waiting Steve Webb: At March 2013, there were 10,118,298 times and next steps, including Atos Healthcare’s loans outstanding relating to 2,940,087 customers. The withdrawal from delivery of work capability assessments following table indicates the age of loans and their in Great Britain before the end of the current contract. volumes and values. Atos Healthcare will continue to deliver work capability Age of loan Loans Value (£000) assessments until contract exit and will still be subject to a quality and service credit regime. We will continue Five years and 1,837,896 218,840 to work with Atos to ensure they can deliver the best over service possible to claimants until they leave the contract. Between one and 5,898,911 595,737 five years Less than one 2,381,491 373,729 year ELECTORAL COMMISSION COMMITTEE Total 10,118,298 1,188,306 Electoral Register: Dudley The Department pursues all debts available for recovery. Where we have difficulty with locating a customer and Ian Austin: To ask the hon. Member for South West obtaining payment from them we will employ a private Devon, representing the Speaker’s Committee on the sector company to do this for us; for year ending March Electoral Commission, what the electoral figures were 2013 we paid £880,000 and recovered £6.1 million. in each ward in the recent confirmation dry run Data has been included for the financial year 2012-13, conducted in Dudley Metropolitan Borough. [191132] the latest year for which the audited Social Fund White Paper Account is available. The 2013-14 Account will Mr Streeter: The Electoral Commission informs me be publicly available from July 2014. that the confirmation dry run involved matching all entries on the electoral registers against the Department Unemployed People: Cancer for Work and Pensions (DWP) Customer Information System database. Entries would be marked as green if they matched with DWP, amber if they were a partial Mr Jamie Reed: To ask the Secretary of State for match or red if there was no match. Work and Pensions what support his Department makes available to people who are unable to work while Results for all wards are available on the Commission’s receiving treatment for cancer and what assets which website here: cannot quickly be converted to enough money to cover http://www.electoralcommission.org.uk/__data/assets/ excel_doc/0003/163146/Confirmation-dry-run-2013-Results- consequential costs. [194168] Wards.xls Esther McVey: People who are unable to work while The ward results for Dudley metropolitan borough receiving treatment for cancer may be entitled to claim council were as follows: employment and support allowance and, depending on the circumstances of them and their family, may be Percentage entitled to other benefits such as personal independence Green Amber Ward matches matches Red matches payment, housing benefit and council tax reduction. Amblecote 85.3 1.0 13.8 Work Capability Assessment Belle Vale 84.4 1.8 13.7 Brierley Hill 81.6 1.7 16.7 Brockmoor & 85.6 1.1 13.3 Mr Sanders: To ask the Secretary of State for Work Pensnett and Pensions what the average waiting time for a work Castle & Priory 83.7 1.4 14.9 capability assessment is for claimants in (a) Torbay Coseley East 86.2 1.0 12.8 local authority area, (b) the South West region and (c) Cradley & Wollescote 83.9 1.7 14.4 England. [193856] 609W Written Answers1 APRIL 2014 Written Answers 610W

Percentage Percentage Green Amber Green Amber Ward matches matches Red matches Ward matches matches Red matches

Gornal 87.9 1.0 11.1 Ely 84.9 1.6 13.6 Halesowen North 84.7 1.3 13.9 Fairwater 84.0 1.6 14.4 Halesowen South 87.6 1.2 11.2 Gabalfa 38.0 3.1 58.9 Hayley Green & 88.7 1.0 10.3 Grangetown 65.8 4.7 29.5 Cradley South Heath 81.7 1.4 16.9 Kingswinford 89.0 1.1 9.8 Lisvane 87.2 1.2 11.6 North & Wall Llandaff 78.8 1.9 19.2 Heath Llandaff North 82.4 1.7 15.9 Kingswinford 89.4 0.9 9.7 South Llanishen 81.7 1.4 16.9 Lye & Stourbridge 84.0 1.7 14.4 Llanrumney 85.1 1.7 13.3 North Pentwyn 82.6 1.5 15.9 Netherton, 83.4 2.1 14.5 Pentyrch 86.1 1.8 12.1 Woodside & Penylan 71.3 3.5 25.2 St Andrews Plasnewydd 42.5 8.3 49.2 Norton 88.0 1.1 10.9 Pontprennau/old 78.6 1.4 20.0 Pedmore & 86.8 1.4 11.8 St Mellons Stourbridge East Radyr 82.8 1.5 15.7 Quarry Bank & 85.8 1.3 13.0 Rhiwbina 87.2 1.3 11.5 Dudley Wood Riverside 62.0 8.1 29.9 Sedgley 88.3 1.0 10.6 Rumney 84.0 2.4 13.7 St James’s 83.7 1.5 14.8 Splott 75.3 2.8 21.9 St Thomas’s 80.6 2.2 17.1 Trowbridge 80.5 2.0 17.5 Upper Gornal & 87.6 0.9 11.5 Woodsetton Whitchurch and 83.6 1.2 15.1 Tongwynlais Wollaston & 84.6 1.2 14.1 Stourbridge Town The ward results for the Vale of Glamorgan council Wordsley 87.0 1.0 12.0 are as follows: Electoral Register: South Wales Percentage Green Amber Stephen Doughty: To ask the hon. Member for South Ward matches matches Red matches West Devon, representing the Speaker’s Committee on the Electoral Commission, what the electoral registration Baruc 81.8 2.6 15.7 figures were in each ward in the recent confirmation Buttrills 83.0 2.0 15.0 dry run conducted in (a) Cardiff county council and Cadoc 82.9 2.0 15.1 (b) Vale of Glamorgan council. [191131] Castleland 76.9 2.8 20.3 Cornerswell 86.3 1.0 12.6 Mr Streeter: The Electoral Commission informs me Court 82.5 2.4 15.1 that the confirmation dry run involved matching all Cowbridge 81.9 4.0 14.1 entries on the electoral registers against the Department Dinas Powys 86.6 2.0 11.4 for Work and Pensions (DWP) Customer Information Dyfan 86.3 1.3 12.4 System database. Entries would be marked as green if Gibbonsdown 85.4 1.4 13.2 they matched with DWP, amber if they were a partial Illtyd 85.8 1.6 12.7 match or red if there was no match. Llandough 84.5 1.7 13.8 Results for all wards are available on the Commission’s Llandow/Ewenny 82.0 5.2 12.8 website here: Llantwit Major 82.8 1.9 15.3 http://www.electoralcommission.org.uk/__data/assets/ Peterston-Super- 81.3 5.0 13.7 excel_doc/0003/163146/Confirmation-dry-run-2013-Results- Ely Wards.xls Plymouth 82.9 3.9 13.3 The ward results for Cardiff council are as follows: Rhoose 84.3 2.3 13.4 St Athan 82.2 2.3 15.5 Percentage St Augustine’s 73.8 3.8 22.4 Green Amber St Bride’s Major 82.0 3.8 14.1 Ward matches matches Red matches Stanwell 82.7 2.5 14.8 Adamsdown 55.0 7.2 37.8 Sully 82.1 2.3 15.6 Butetown 55.3 3.8 41.0 Wenvoe 82.6 4.9 12.5 Caerau 84.1 2.0 13.9 Canton 75.0 3.5 21.5 Electoral Register: West Midlands Cathays 24.1 3.8 72.2 Creigiau/ 84.8 1.6 13.6 St Fagans Ian Austin: To ask the hon. Member for South West Devon, representing the Speaker’s Committee on the Cyncoed 78.6 1.7 19.7 Electoral Commission, what the electoral registration 611W Written Answers1 APRIL 2014 Written Answers 612W figures were in each ward in the recent confirmation dry Mr Duncan: I refer the hon. Member to the answer run conducted in (a) Sandwell Metropolitan Borough, that was given by the Minister for the Cabinet Office (b) Walsall Metropolitan Borough, (c) Wolverhampton and Paymaster General, my right hon. Friend the Member Metropolitan Borough and (d) Birmingham City. for Horsham (Mr Maude), on 26 March 2014, Official [191130] Report, column 300W.

Mr Streeter: The Electoral Commission informs me Developing Countries: Water that the confirmation dry run involved matching all entries on the electoral registers against the Department Jim Dobbin: To ask the Secretary of State for for Work and Pensions (DWP) Customer Information International Development what support the Government System database. Entries would be marked as green if offered for World Water Day 2014. [193686] they matched with DWP, amber if they were a partial match or red if there was no match. Lynne Featherstone: This year the United Nations Results for all wards are available on the Commission’s dedicated World Water Day to draw attention to the website here: challenge of meeting water and energy demands. DFID http://www.electoralcommission.org.uk/__data/assets/ policy teams organised two events with external speakers excel_doc/0003/163146/Confirmation-dry-run-2013-Results- to promote the day and water issues. The first was to Wards.xls raise awareness of the role of water security in promoting The ward results for Sandwell council, Walsall council, human and economic development, and the second to Wolverhampton city council and Birmingham city council examine how private sector, technology and innovation will be deposited in the Library. can improve the functionality of water supplies. The Global Water Partnership, which is supported by DFID, used World Water Day to launch its new strategy INTERNATIONAL DEVELOPMENT “Towards 2020”, which focuses upon innovative and multi-sectoral approaches to tackle water resource Africa management The World Bank’s Water Partnership Programme, also supported by DFID, used the day to Jim Shannon: To ask the Secretary of State for highlight their Thirsty Energy Programme. International Development how many portable kits for diagnosis of (a) HIV and (b) hepatitis her Development Aid Department has delivered to Africa in each of the last three years. [193757] Martin Horwood: To ask the Secretary of State for Lynne Featherstone: The majority of DFID’s support International Development what steps she is taking on HIV is through the Global Fund to fight AIDS, TB as co-chair of the Mexico High Level Meeting of and Malaria (GFATM). Between 2002 and 2012, GFATM the Global Partnership for Effective Development supported programmes provided 89 million HIV counselling co-operation to ensure that future aid to the private and testing sessions in sub-Saharan Africa; the UK sector respects the Busan principles. [194268] provided approximately 9% of total funding to GFATM in this period. Anas Sarwar: To ask the Secretary of State for DFID contributes to prevention and control of diseases International Development what steps she is taking in causing hepatitis in African countries through support her role as co-chair of the Mexico High Level Meeting to the GAVI Alliance (vaccines and immunisation), of the Global Partnership for Effective Development to water, sanitation and hygiene programmes, and work to ensure that future development co-operation respects strengthen health systems and services. the Organisation for Economic Co-operation and Developments Busan Principles (a) generally and (b) Jim Shannon: To ask the Secretary of State for as they apply to aid allocated to private sector International Development what funds her Department organisations. [194129] has allocated to each country in Africa to tackle wildlife crime. [193758] Justine Greening: The Global Partnership for Effective Development Co-operation (GPEDC) is shortly to meet Lynne Featherstone: DFID recognises that the Illegal in Mexico to discuss principles of country ownership, Wildlife Trade (IWT) is a serious criminal industry, one results, transparency and inclusivity that are applicable that undermines sustainable economic development in across all sectors, including how business can contribute some of the world’s poorest countries, funds serious to development. and organised crime, and threatens the existence of the world’s most iconic species. As part of UK co-ordinated Tax Havens efforts to tackle IWT, DFID has committed £10 million to support DEFRA-led delivery of actions outlined in Mr Godsiff: To ask the Secretary of State for the London Conference Declaration, to include activities International Development what assessment her in African countries affected by IWT. Department has made of the policy of Barclays on the All Party Groups use of tax havens. [193462]

Chris Ruane: To ask the Secretary of State for Mr Gauke: I have been asked to reply on behalf of International Development what her Department’s the Treasury. policy is on allowing officials to appear before all-party I am unable to comment on the tax affairs of individual parliamentary groups. [193561] companies. 613W Written Answers1 APRIL 2014 Written Answers 614W

HOME DEPARTMENT what proportion of new drivers obtaining driving convictions were offered speed awareness courses in Alcoholic Drinks each year since 2010. [194127]

Jim Shannon: To ask the Secretary of State for the Damian Green: I refer the hon. Member to my answer Home Department what discussions she has had with of 27 March 2014, Official Report, column 372W. representatives of the retail sector about measures that The number of drivers who opted for a speed awareness could be taken by shops selling alcohol to reduce the course rather than accept penalty points on their driving incidence of binge-drinking. [193543] licence in 2010 is 447,724, 2011 is 772,430, 2012 is 926,101 and 2013 is 953,428. The offer of a speed Norman Baker: Home Office Ministers have meetings awareness course is at the discretion of the police. To be with a wide variety of international partners, as well as deemed eligible, there must be no excessive speed or organisations and individuals in the public and private other offences committed at the same time. Information sectors, as part of the process of policy development on previous motoring convictions is not taken into and delivery. Details of these meetings are passed to the account. Cabinet Office on a quarterly basis and are subsequently published on the Gov.uk website: Drugs: Misuse http://data.gov.uk/dataset/ministerial-data-home-office Diana Johnson: To ask the Secretary of State for the Antisocial Behaviour Orders Home Department for what reasons the expert panel for the review into new psychoactive substances does Jake Berry: To ask the Secretary of State for the not include representation from the public health Home Department what plans she has to reform sector. [193255] anti-social behaviour orders; and if she will make a statement. [193527] Norman Baker: It does. Public health expertise is Norman Baker: The Government’s reforms are contained contributed to the New Psychoactive Substances review in the Anti-social Behaviour, Crime and Policing Act by: 2014. The Act will introduce two new powers, a civil Dr Owen Bowden Jones, Consultant in Addiction Psychiatry, injunction and the criminal behaviour order, to replace who is leading an initiative to develop clinical knowledge summaries antisocial behaviour orders. Unlike antisocial behaviour for New Psychoactive Substances with support from Public Health England; Paul Griffiths, Head of Science at the European Monitoring orders, the new powers will not focus solely on enforcement Centre for Drugs and Drug Addiction, who received an award but can include positive requirements to ensure individuals from the US National Institute for Drug Addiction in recognition address the underlying causes of their behaviour. of his role in developing the knowledge base on NPS; and the drug policy team at the Department of Health. Crime: Greater Manchester EU Justice and Home Affairs Mike Kane: To ask the Secretary of State for the Home Department what assessment she has made of Mr Raab: To ask the Secretary of State for the Home the effect of recent changes to the funding of Greater Department pursuant to the answer of 19 March 2014, Manchester police on crime rates in that region. Official Report, column 604W, on EU Justice and [194132] Home Affairs, with which countries the EU as a legal Damian Green: The funding settlement for the police personality has concluded co-operation agreements in is a challenging one. However, as the vast majority of the field of justice and home affairs. [193408] forces, including Greater Manchester police are demonstrating, it is manageable. The latest report from Karen Bradley: I refer my hon. Friend to the response Her Majesty’s Inspectorate of Constabulary (Policing given by the Minister for Europe, my right hon. Friend in Austerity: Rising to the Challenge July 2013) found the Member for Aylesbury (Mr Lidington), on 24 March that crime is falling and the proportion of officers on 2014, Official Report, column 70W. In addition, JHA the front line is increasing. The Government has protected agreements have also been concluded with Brazil, Ukraine the police from the additional 2014-15 reductions that and Moldova during the course of this Government were announced in the Chancellor of the Exchequer, which build on the borders and immigration aspects of my right hon. Friend the Member for Tatton (Mr Osborne), the Schengen system, in which the UK does not participate. autumn statement of 5 December 2013, Official Report, Forced Marriage columns 1101-13, which means the police will face a 3.3% cash reduction in central Government funding Helen Jones: To ask the Secretary of State for the (5.75% in real terms) compared to 2013-14. Once future Home Department how many people have been police precept income is taken into account, the reduction arrested for breach of a forced marriage protection in overall funding is even lower. order in each year since such orders came into force. In the Greater Manchester police force areas, recorded [193700] crime fell by 7% between September 2012 and September 2013. Norman Baker: The information requested is not Driving: Licensing collected centrally by the Home Office. Powers of arrest for breach of a forced marriage Richard Burden: To ask the Secretary of State for the protection order are currently issued by the civil courts. Home Department pursuant to the answer of 5 February Arrests for civil offences are not covered by the Home 2014, Official Report, column 238W,on driving: licensing, Office arrest collection. 615W Written Answers1 APRIL 2014 Written Answers 616W

Breach of a forced marriage protection order will Karen Bradley: The serious and organised crime strategy become an offence when section 120 of the Anti-social sets out how the Government intends to improve the Behaviour, Crime and Policing Act 2014 comes into tackling of criminal finances both in the UK and overseas. force in summer 2014. This includes developing asset sharing agreements with Human Trafficking: Repatriation other countries in order to improve international co-operation on asset recovery. Although no assets have Mr Frank Field: To ask the Secretary of State for the been repatriated to another country since 2008-09, there Home Department how many (a) men and (b) women are a number of ongoing investigations, particularly as who are victims of human trafficking are nationals part of the Arab Spring Asset Recovery Taskforce, of non-EEA countries have received return and about which it is not possible to comment further at this reintegration assistance through the Assisted Voluntary stage. Returns for Irregular Migrants programme since April Riot Control Weapons: Greater London 2011; and how much was so made available to those trafficked from (i) inside and (ii) outside the EU. [191303] Keith Vaz: To ask the Secretary of State for the Home Department what recent representations she has Karen Bradley: 16 victims of trafficking (one male, 15 received about the use of water cannon in London. female) have received financial assistance under the [194013] programme since April 2011. While the Assisted Voluntary Return for Irregular Damian Green: A number of representations have Migrants (AVRIM)programme does not normally include been received recently about the use of water cannon in financial assistance, a discretionary sum of up to £1000 London. is provided for specified vulnerable cases, and this includes The Secretary of State for the Home Department, victims of trafficking. Assisted Voluntary Return is my right hon. Friend the Member for Maidenhead only available to non-EEA nationals and the support is (Mrs May), has also now received the formal request to not dependent upon whether the individual has arrived authorise water cannon for use by the police in England from inside or outside the EU. and Wales. She is considering this request and will The figures provided are sourced from a Home Office announce her decision in due course and lay the relevant management information system which is not quality information in the House Library. assured under National Statistics protocols and is subject to change due to internal data quality checking. Figures Theft: Sheep provided from this source do not constitute part of National Statistics and should be treated as provisional. Miss McIntosh: To ask the Secretary of State for the Immigration Home Department what recent representations she has received on sheep rustling. [193320] Sarah Teather: To ask the Secretary of State for the Home Department how much her Department has Norman Baker: The Home Office talks to a wide spent on legal fees in immigration cases when she has range of partners about rural crime and theft of particular been (a) the defendant and (b) the appellant, in each commodities. However, we have not recently received of the last five years for which records are available. any formal representations about sheep rustling. [194153] Working Hours James Brokenshire: The Home Office cannot report separately on expenditure on legal fees in immigration Lucy Powell: To ask the Secretary of State for the cases where the Secretary of State has been either Home Department what proportion of employees in defendant or appellant because it does not record data her Department of what (a) Civil Service pay grade in the format required for such an analysis. The only and (b) gender work (i) reduced hours, (ii) flexi-time, way to answer this question would be to review all (iii) from home, (iv) a compressed working week, (v) payments of litigation expenditure manually which would job share, (vi) term-time only and (vii) part-time. incur disproportionate cost. [193967] Proceeds of Crime Karen Bradley: The proportion of Home Office Emily Thornberry: To ask the Secretary of State for employees with each working pattern by (a) Civil Service the Home Department how many assets of criminal pay grade is shown in Table 1. origin have been repatriated from the UK to jurisdictions The proportion of Home Office employees with each overseas in each year since 2008-09. [193656] working pattern by (b) gender is shown in Table 2.

Table 1: (a) Home Office employees by working pattern and grade Percentage Grade equivalency Working pattern1 1. AA 2. AO 3. EO 4. HEO 5. SEO 6. G7 7. G6 8. SCS Total

(i) Reduced hours 32.6 28.2 18.8 14.3 11.3 9.7 10.1 2.2 19.6 (ii) Flexi-time 55.1 42.7 25.6 39.2 41.9 26.1 11.2 0.9 34.1 (iii) From home 0.1 0.1 0.2 0.8 2.6 4.4 3.3 1.3 0.8 (iv) Compressed working week 2.1 2.9 2.9 3.8 6.5 8.3 10.1 4.4 3.7 (v) Job share 0.0 0.1 0.1 0.3 0.4 1.1 0.7 0.0 0.2 617W Written Answers1 APRIL 2014 Written Answers 618W

Table 1: (a) Home Office employees by working pattern and grade Percentage Grade equivalency Working pattern1 1. AA 2. AO 3. EO 4. HEO 5. SEO 6. G7 7. G6 8. SCS Total

(vi) Term-time only 1.9 1.5 0.8 0.8 0.2 0.2 0.2 0.0 0.9 (vii) Part-time2 See part (i) 1 Figures for parts (i) to (vi) cannot be summed as the working patterns listed are not mutually exclusive, for example an employee can work reduced hours and work flexi-time. 2 The Home Office defines working reduced hours and part time working as the same i.e. when an employee has a full-time equivalent (FTE) of less than 1 (full-time). Extract Date: 1 March 2014. Period Covered: Alldataisasat28February2014. Organisational Coverage: Data includes the core Home Office (including Border Force, UK Visas and Immigration and Immigration Enforcement) and the Executive Agencies; HM Passport Office and the National Fraud Authority. Employee Coverage: Data is based on headcount of all current civil servants (paid and unpaid) as at 28 February 2014. Sources: Data for part (i) taken from Data View—the Home Office’s single source of Office for National Statistics compliant monthly snapshot corporate Human Resources data. Data for parts (ii) to (vi) taken from the Department’s employee records system and validated and cleansed against Data View.

Table 2: (b) Home Office employees by working pattern and gender Mr Francois: The UK is committed to helping the Percentage Afghans achieve credible, inclusive and transparent elections. Gender Whilst the Afghan National Security Forces (ANSF) Working pattern1 Female Male Total have lead security responsibility for Afghanistan, the UK supports ANSF operations by providing enablers (i) Reduced hours 31.6 6.7 19.6 such as medical evacuation, aviation and surveillance (ii) Flexi-time 39.5 28.2 34.1 capabilities. (iii) From home 0.8 0.8 0.8 (iv) Compressed 4.6 2.8 3.7 working week Vernon Coaker: To ask the Secretary of State for (v) Job share 0.4 0.1 0.2 Defence what support the UK is offering to the (a) EU and (b) OSCE election monitoring missions to (vi) Term-time only 1.6 0.1 0.9 Afghanistan. [194095] (vii) Part-time2 See part (i) 1 Figures for parts (i) to (vi) cannot be summed as the working patterns listed are not mutually exclusive, for example an employee Mr Francois: The UK is not providing any direct can work reduced hours and work flexi-time. support to the EU or OSCE election monitoring missions 2 The Home Office defines working reduced hours and part time to Afghanistan. working as the same i.e. when an employee has a full-time equivalent (FTE) of less than 1 (full-time). Extract Date: Armed Forces Day: Northern Ireland 1 March 2014. Period Covered: Alldataisasat28February2014. Mr Gregory Campbell: To ask the Secretary of State Organisational Coverage: for Defence what plans his Department has to hold Data includes the core Home Office (including Border Force, UK Armed Forces Day events in Northern Ireland in June Visas and Immigration and Immigration Enforcement) and the Executive Agencies; HM Passport Office and the National Fraud 2014. [194119] Authority. Employee Coverage: Mr Dunne: Armed Forces Day events provide Data is based on headcount of all current civil servants (paid and opportunities for the nation to show its support for the unpaid) as at 28 February 2014. Sources: armed forces community. These events are community-led Data for part (i) taken from Data View—the Home Office’s single and can come hi many different forms, from the national source of Office for National Statistics compliant monthly snapshot event through to local events organised by councils, corporate Human Resources data. Data for parts (ii) to (vi) taken ex-service organisations, community groups and schools. from the Department’s employee records system and validated and cleansed against Data View. The Ministry of Defence (MOD) does not hold armed forces events, apart from the national event held this year in Stirling, but we do invite local authorities and community organisations to consider hosting an event DEFENCE and to apply for funding from the MOD. Part-funding applications have been received for the Northern Ireland Afghanistan Regional Armed Forces Day event which is scheduled to take place in Ards on 21 June, events in Articlave on Vernon Coaker: To ask the Secretary of State for 27 and 28 June and for an event planned by Carrickfergus Defence what support British service personnel are borough council to take place on 28 June. As further providing to the Afghan National Security Forces to events are registered by their organisers, they will be ensure that the elections in Afghanistan are free and published on the Armed Forces Day website: fair. [194094] www.armedforcesday.org.uk 619W Written Answers1 APRIL 2014 Written Answers 620W

Army: Disciplinary Proceedings Reason Total

Mrs Moon: To ask the Secretary of State for Defence Personal Failings 35 how many personnel have been dismissed under AGAI Professional Failings * 67 in each year since 2008; what the reasons were for Unspecified 50 each such dismissal; and if he will make a statement. [193647] 2012 Civil Conviction 70 Mr Dunne: Within the British Army, Administrative Personal Failings 15 Action is taken in accordance with the procedures set Professional Failings 10 out in Army General Administrative Instructions Chapter Unspecified 10 67, abbreviated to AGAI 67. It is a process of self-regulation that will be familiar to most civilian employers and employees, where action is taken to rehabilitate, censure 2013 Civil Conviction 80 or initiate sanctions to correct professional or personal Personal Failings 15 failings. The administrative process involves investigation, Professional Failings 5 reporting, determination, sanction and review by a Unspecified 10 higher authority. It is entirely separate from the Service Justice System. 2014 (to Civil Conviction 30 It may result in a range of outcomes from the assignment date) of extra duties, informal and formal interviews or rebuke Personal Failings 5 to, in the most serious cases, termination of service. Professional Failings * If individuals consider themselves to have been wronged Unspecified * by any administrative action, they are also entitled to submit a service complaint seeking redress of individual Figures have been rounded to the nearest 5 in accordance grievance. with departmental practice in order to protect individual Central data relating to AGAI 67 discharges for the data. The symbol ‘*’ has been used to indicate 1-4. period before 2010 are incomplete and could be provided Cyprus only at disproportionate cost. Data from 2010 are provided in the following table. Mrs Moon: To ask the Secretary of State for Defence Reason Total how many (a) allegations of, (b) investigations of, (c) prosecutions for and (d) convictions for (i) rape 2010 Civil Conviction/ 75 and (ii) sexual assault fell under the jurisdiction of the Caution Service Police in Cyprus in each year since 2008. Personal Failings 35 [193650] Professional Failings 10 Unspecified 24 Mr Dunne: The following table details allegations of rape and sexual assault investigated by the Service Police in Cyprus in each year since the implementation 2011 Civil Conviction/ 110 Caution of the Armed Forces Act 2006 on 1 November 2009 to 25 March 2014.

Service Prosecuting Allegations Authority decision made Referrals made to prosecute Convictions Comments

1 November 2009 - 31 December 2010 Rape 1 1 0 0 Attempted rape 0 0 0 0 Sexual assault by penetration 1 1 1 1 Sexual assault no penetration 1 1 0 0

1 January 2011 - 31 December 2011 Rape 0 0 0 0 Attempted rape 1 1 1 0 Sexual assault by penetration 0 0 0 0 Sexual assault no penetration 4 2 2 1

1 January 2012 - 31 December 2012 Rape 2 2 1 0 Attempted rape 0 0 0 0 621W Written Answers1 APRIL 2014 Written Answers 622W

Service Prosecuting Allegations Authority decision made Referrals made to prosecute Convictions Comments

Sexual assault by penetration 1 1 0 0 Sexual assault no penetration 5 2 2 1

1 January 2013 - 31 December 2013 Rape 1 1 0 0 Service Prosecuting Authority decision pending Attempted rape 0 0 0 0 Sexual assault by penetration 0 0 0 0 Sexual assault no penetration 2 2 0 0

1 January 2014 - 25 March 2014 Rape 0 0 0 0 Attempted rape 0 0 0 0 Sexual assault by penetration 0 0 0 0 Sexual assault no penetration 1 0 0 0 Remains under Investigation

DSG Ashchurch Joint Strike Fighter Aircraft

Mrs Moon: To ask the Secretary of State for Defence Thomas Docherty: To ask the Secretary of State for (1) what steps he is taking to ensure that the value for Defence if he or officials of his Department will discuss money assessment prepared for the closure of DSG the issues raised by Lieutenant General Christopher Ashchurch is in accord with Joint Service Protocol 507; Bogdan of the US Air Force in his testimony on the and if he will make a statement; [193644] F-35 programme to the US House Armed Services (2) when the value for money report for the proposed Tactical Air and Land Forces sub-committee with their closure of the DSG Ashchurch site will be produced; US counterparts. [194198] and if he will make a statement. [193651] Mr Dunne: UK officials are embedded within the US Mr Dunne: The assessment study programme for Joint Strike Fighter Programme Office and are present Logistics Service Ashchurch is still being confirmed. at daily meetings chaired by Lt Gen Bogdan. Any Once undertaken, the study results will be used in programme issues are presented at these meetings, meaning development of a business case seeking approval for a the UK has full visibility of any F-35 concerns. selected solution. It is too early to say when the business All of the issues raised by Lt Gen Bogdan in his case will be completed. testimony to the House Armed Services Committee are Application of JSP 507 is required policy for all well-known to the UK and are being actively managed business cases. It will be applied in this case. by the programme. Egypt Military Police

Neil Parish: To ask the Secretary of State for Defence Mrs Moon: To ask the Secretary of State for Defence what non-lethal military support his Department has how many service police there were in (a) each branch provided to Egypt in each year since 2012. [194083] of the armed forces and (b) the Special Investigations Branch in the last year for which data is available; how Dr Murrison: Since 2012 Egyptian personnel have many such police have received specialist training in the undergone defence education and training in the UK, investigation of sexual offences; and if he will make a including Initial Officer Training, Advanced Command statement. [191443] and Staff Course, and Royal College of Defence Studies attendance. Anna Soubry: The following table shows the number of naval service police, Army Royal Military Police and Employment Tribunals Service Royal Air Force Police in the armed forces and the number of personnel in each of the Special Investigation Mrs Moon: To ask the Secretary of State for Defence Branches (SIB), as of 1 February 2014. if he will place in the Library a copy of all Employment Tribunal judgements made against his Department since Number of personnel Service Number of service police in the SIB 2008 to date; and if he will make a statement. [193112] Naval 290 30 Anna Soubry: The information will take time to collate. service I will write to the hon. Member shortly. Army 1,970 1170 623W Written Answers1 APRIL 2014 Written Answers 624W

Mr Dunne: Information on reserve forces is not held Number of personnel Service Number of service police in the SIB centrally and could be provided only at disproportionate cost. RAF 1,140 70 1 Figures include Royal Military Police (SIB) personnel by trade Strategic Defence and Security Review group and officers currently serving in the RMP (SIB) Regiment. Note: Data has been rounded to the nearest 10 except when ending in 5, Vernon Coaker: To ask the Secretary of State for where numbers have been rounded to the nearest 20 to prevent Defence if he will publish the 60 questions relating to systematic bias. the future Strategic Defence and Security Review to All service police undertake training at the Defence which the Permanent Under-Secretary of his Department College of Policing and Guarding (DCPG). This includes referred during his oral evidence to the Defence Select general training in the form of the Initial Military Committee on 25 March 2014. [194118] Police Training Course, undertaken by personnel at the start of their careers; the Volume Crime Investigation Mr Philip Hammond: The cross-Government lead on Course, undertaken by personnel who have served for the next NSS and SDSR sits with Cabinet Office. The three-four years; and the Serious Crime Investigation Ministry of Defence (MOD) is engaged with them and Course, which all members of the SIB must pass before other interested Departments. MOD is in the very early joining it. These courses incorporate training on the stages of identifying those areas which may require handling of sexual offences at various levels, including further work or which we may wish to look at in 2015 as elements on sexual offences legislation; investigative part of the Cabinet Office-led process. This evolving techniques; forensic awareness; dealing with witnesses work supports the development of Government policy and suspects; the preservation of evidence; and interaction and I am therefore not able to provide this internal with victims. policy work. In addition, selected service police attend a range of specialist and advanced detective training at the DCPG and external, nationally recognised training providers (such as civilian police forces). This training includes TREASURY the Senior Investigating Officer course, Crime Scene Analysis and Tier 3-5 Interviewing Courses, all of which Air Passenger Duty are relevant to the investigation of a serious sexual offence. Mr Gregory Campbell: To ask the Chancellor of the Service police also attend training primarily designed Exchequer what assessment he has made of the effects to cover the investigation of sexual offences. The following of the removal of air passenger duty (APD) on the table shows the numbers who have attended these courses: number of passengers travelling between Belfast and Newark International; and if he will take that Course title and number of attendees assessment into account when considering changes to Specialist Child levels of APD for other flights from and within the Abuse UK. [194123] Sexual Offences Investigator Investigation Achieving Best Development Nicky Morgan: The Government does not monitor Training Evidence Programme Service (SOIT) (ABE) (SCAIDP) passenger volumes on individual routes. The published statistics on air passenger duty, including information Naval service 20 40 - on passenger numbers by band, are available at: Army 30 25 10 https://www.uktradeinfo.com/Statistics/Pages/ RAF 10 10 - TaxAndDutyBulletins.aspx ‘-’ means less than 5 The published statistics on airport passenger volumes Note: are available at: Data has been rounded to the nearest 10 except when ending in 5, where numbers have been rounded to the nearest 20 to prevent http://www.caa.co.uk/airportstatistics systematic bias. Budget 2014 announced the reform of air passenger NATO duty with the abolition of bands C and D from 1 April 2015. This will eliminate the two highest rates of air Mr Arbuthnot: To ask the Secretary of State for passenger duty charged on flights to countries over Defence what the origins are of the NATO target for 4,000 miles from Britain, cutting tax for millions for allies to spend two per cent of gross domestic product passengers to travelling to China, India, Brazil and on defence; and if he will make a statement. [193766] many other emerging markets. This will mean that Dr Murrison: NATO Resource Guidance first emerged flights to South Asia and the Caribbean will pay tax at during the Cold War. NATO introduced the current the lower band B rate. guideline that allies should spend 2% of gross domestic Air passenger duty is a relatively efficient and non- product on defence in 2006. regressive tax, which makes an important contribution Reserve Forces: Brigg to the public finances. Andrew Percy: To ask the Secretary of State for All Party Groups Defence how many (a) men and (b) women there were in the reserve forces in Brigg and Goole constituency in Chris Ruane: To ask the Chancellor of the Exchequer the latest period for which figures are available. what his Department’s policy is on allowing officials to [194259] appear before all-party parliamentary groups. [193566] 625W Written Answers1 APRIL 2014 Written Answers 626W

Nicky Morgan: I refer the hon. Member to the answer Both of these measures, which will come into effect given to him by the Minister for the Cabinet Office and from 1 October 2014, are designed to reduce tax Paymaster General, my right hon. Friend the Member administration costs and burdens on motorists. The for Horsham (Mr Maude), on 26 March 2014, Official Tax Information and Impact Note, published on Report, column 300W. 10 December 2013, estimated that the abolition of the tax disc could provide business with administrative cost Children: Day Care savings of around £7 million per year. Business will no longer incur postage costs by re-posting the tax disc to Lucy Powell: To ask the Chancellor of the Exchequer drivers or from having to return the tax disc to the how his Department calculates that 2.5 million eligible Driver and Vehicle Licensing Agency (DVLA) for a families would benefit from tax-free childcare in the VED refund. consultation on Tax-free Childcare; and how his Under the move to a paperless tax disc, when a Department calculated the revised figure of 1.26 million vehicle is sold the VED will no longer be transferable eligible families in Delivering Tax-Free Childcare, the with that vehicle. The new vehicle buyer will need to Government’s response to the consultation on design purchase a new VED licence. This non-transferability and operation. [193329] of VED provides consumer protection by preventing a Nicky Morgan: The estimates from the consultation new vehicle owner unknowingly keeping an unlicensed document have been refined using the latest survey vehicle if the previous vehicle owner subsequently seeks data, removing overlaps with families with access to a refund from the DVLA. There will be no change to other policies, and reflecting the final policy following the process for transferring a personalised registration formal consultation. number plate when the vehicle is sold. Details of the number of families who are eligible for Occupational Pensions the scheme, what makes someone eligible for the scheme, and the definition of qualifying childcare costs be found Mr Weir: To ask the Chancellor of the Exchequer if in Delivering Tax-Free Childcare: the Government’s he will make it his policy that applicants for means- response to the consultation on design and operation: tested benefits aged 55 years and above will not be https://www.gov.uk/government/uploads/system/uploads/ deemed for purposes of benefit eligibility assessment to attachment_data/file/293084/PU1607_Tax_free_ Childcare_response.pdf have vested in the capital and potential income held within their defined contribution pension pots. [194190] Coinage Mr Gauke: Under existing rules the capital value Cathy Jamieson: To ask the Chancellor of the of pension investments is disregarded when assessing Exchequer what estimate he has made of the likely entitlement to working age income related benefits. costs to businesses of the introduction of a new one Actual pension payments are deducted from both income- pound coin. [193682] based and contributory benefits. When an individual is over the qualifying age for pension credit and has a Nicky Morgan: The Budget announced that the existing pension fund that they have not yet accessed, a notional £1 coin will be replaced with a more modern and secure income is deducted from any benefit entitlement. design. After 30 years in circulation, the current coin has become vulnerable to counterfeiting. Smuggling There will be a public consultation this summer that will focus on how to manage impacts on industry and Jake Berry: To ask the Chancellor of the Exchequer other affected parties. The Government is committed to how many HM Revenue and Customs staff were working with industry to minimise costs and disruption. employed on detection of (a) tobacco and (b) alcohol The Government plans for the new coin to be introduced smuggling in each of the last five years. [193522] in 2017. This timeline was decided expressly to allow industry three years to plan for the change. Nicky Morgan: HM Revenue and Customs (HMRC) does not employ staff specifically to detect tobacco and Motor Vehicles: Excise Duties alcohol duty fraud. Instead, multi-disciplinary resources are deployed flexibly according to risk across all taxes Jonathan Edwards: To ask the Chancellor of the administered by the Department. To assure the correct Exchequer (1) what impact assessment he has made of payment of tobacco and alcohol duty this involves his plans to introduce electronic Vehicle Excise Duty HMRC activity all along the supply chains for these on (a) companies that trade cars and (b) the sale of goods, and operating in partnership with other agencies second-hand cars; and if he will make a statement; such at Border Force and in other EU member states. [193786] The total resource expended by HMRC in tackling (2) what assessment he has made of the likely effect these frauds in each year from 2008-09 to 2012-13, of the introduction of electronic Vehicle Excise Duty expressed as full-time equivalents (FTE), is as follows: on (a) the transfer of personalised number plates and FTE (b) car sale purchases. [193831] Financial year Tobacco Alcohol Total

Nicky Morgan: The autumn statement 2013 announced 2008-09 661.8 446.5 1,108.3 that the Government will legislate in Finance Bill 2014 2009-10 697.2 478.2 1,175.4 to allow motorists to pay their vehicle excise duty 2010-11 737.6 553.7 1,291.3 (VED) by direct debit should they wish to do so, and to 2011-12 765.1 443.7 1,208.8 abolish the paper tax disc. 627W Written Answers1 APRIL 2014 Written Answers 628W

Elliot Foundation FTE Greenwood Dale Foundation Trust Financial year Tobacco Alcohol Total Harris Federation 2012-13 758.5 502.8 1,261.3 Kemnal Academy Trust, The (TKAT) These figures do not include staff in other organisations, Northern Education Trust such as Border Force, working to detect illicit tobacco Nottingham Roman Catholic Diocesan Education Service and alcohol at the frontier. (NRCDES) Working Hours Oasis Community Learning Ormiston Academies Trust Lucy Powell: To ask the Chancellor of the Exchequer Outwood Grange Academies Trust what proportion of employees in his Department of REAch2 Academy Trust each (a) Civil Service pay grade and (b) gender work School Partnership Trust Academies (SPTA) (i) reduced hours, (ii) flexi-time, (iii) from home, (iv) a The Education Fellowship Trust compressed working week, (v) job share, (vi) term-time The Griffin Schools Trust only and (vii) part-time. [193974] The Primary Academies Trust Nicky Morgan: The proportion of employees in HM United Learning. Treasury at each of the pay grades work part-time as at the end of February 2014, are listed in the table (i). See Adoption: Yorkshire and the Humber table (ii) for the proportion by gender. Table (i) Andrew Percy: To ask the Secretary of State for Range/Grade Percentage Education how many children in (a) Brigg and Goole constituency and (b) Yorkshire and the Humber were Range B (AO/AA equivalent) 10.1 adopted in each of the last five years. [194260] Range C (EO equivalent) 13.2 Range D (SEO/HEO equivalent) 3.1 Mr Timpson: The number of looked-after children in Range E (Grade 7 equivalent) 8.4 Yorkshire and the Humber who were adopted in the Range E2 (Grade 6 equivalent) 12.5 years ending 31 March 2009 to 2013 is shown in the SCS 13.6 table. Information at constituency level is not available. Specialist grade 21.4 Looked-after children in Yorkshire and the Humber Number Table (ii) Gender Percentage 2009 420 2010 400 Male 1.3 2011 400 Female 6.9 2012 450 All staff, apart from SCS, have the facility to work 2013 510 flex-time. However we do not record this-centrally. HM Treasury have not requested any staff to work This information has been taken from table LAE1 of reduced hours. the Statistical First Release ″Children Looked After by Local Authorities in England (including adoption and The information requested on the proportion of ″ employees in the department by civil service grade and care leavers)—year ending 31 March 2013 . This Statistical gender who work, from home, a compressed working First Release also includes information at local authority week, job share and term time only, would only be able level and can be found on the Department’s website via to be provided at disproportionate costs, as we do not the following link: hold this information centrally. https://www.gov.uk/government/publications/children-looked- after-in-england-including-adoption

EDUCATION Children: Day Care Academies Stella Creasy: To ask the Secretary of State for Mr Gibb: To ask the Secretary of State for Education Education what meetings officials in his Department if he will list all academy sponsors with 10 or more have had with officials from the Department for Business, academies. [R] [193818] Innovation and Skills on the implications of the Consumer Rights Bill for (a) childcare voucher users and (b) Mr Timpson: Sponsors with 10 or more academies providers of childcare services; and what the Civil Service are as follows: grades of officials present were. [193793] Academies Enterprise Trust (AET) Academy Transformation Trust Elizabeth Truss: We are not aware of any meetings ARK Schools between officials from the Department for Education Cabot Learning Federation and those from the Department for Business, Innovation CfBT Education Trust and Skills (BIS) specifically on the implications of the Clifton Diocese Consumer Rights Bill for providers of childcare services. David Ross Education Trust (DRET) BIS consulted widely on consumer law reform in Diocese of Salisbury Academies 2008 and 2012, and published a draft Bill for pre-legislative Diocese of Wakefield scrutiny in 2013. BIS has also completed full impact E-ACT assessments for the provisions in the Bill. 629W Written Answers1 APRIL 2014 Written Answers 630W

Children: Protection 1. application of the SCR criteria; 2. appointment of reviewers; and Tim Loughton: To ask the Secretary of State for 3. publication of SCR reports. Education on what dates the National Panel on Serious Case Reviews has met; and if he will publish the Education: Employment minutes of that Panel’s meetings. [194096] Andrew Rosindell: To ask the Secretary of State for Mr Timpson: The national panel of independent Education what steps he is taking to increase links experts on Serious Case Reviews has met on the following between education and employment. [193671] dates: 25 July 2013 Matthew Hancock: The Government’s aim is to ensure 9 September 2013 that young people are equipped with the skills, experience 11 November 2013 and qualifications that employers want. The introduction 13 January 2014 of 16-19 study programmes will expand the provision of 10 February 2014 genuine work experience and work-related learning for all post-16 students. We have invested in new apprenticeships 10 March 2014. that are more employer-led than ever before, and introduced The key output of the panel meetings is letters from traineeships to give young people the skills and experience the panel to Local Safeguarding Children Boards making they need to compete successfully for a job. From recommendations on the cases put to them, about the September 2014, the Tech Level qualifications will provide application of the SCR criteria, the appointment of a high-quality vocational alternative to A levels, leading reviewers and the publication of SCR reports. The to a recognised occupation. letters refer to sensitive material not in the public domain These and other reforms arising from Professor Alison and would not therefore be routinely publishable. Wolf’s 2011 review of vocational education have led to far-reaching improvements in vocational education. These Tim Loughton: To ask the Secretary of State for include employer recognition of qualifications and Education what discussions (a) he and (b) other simplified and better-funded arrangements for work Ministers in his Department have had with members of experience. the National Panel on Serious Case Reviews. [194097] Our reforms to GCSEs and A levels will secure Mr Timpson: The Secretary of State for Education, rigorous, challenging qualifications which are responsive my right hon. Friend the Member for Surrey Heath to the needs of students and employers. New GCSEs in (Michael Gove), and I had a meeting with the members English and mathematics, which will provide greater of the panel of independent experts on Serious Case assurance of literacy and numeracy, will be taught from Reviews earlier this year. September 2015, with the first examinations in summer 2017. Tim Loughton: To ask the Secretary of State for Education what interaction the National Panel on Serious School Information (England) (Amendment) Case Reviews has had with the Local Safeguarding Regulations 2012 Children’s Board Network. [194099] Mr Gibb: To ask the Secretary of State for Education Mr Timpson: The national panel of independent pursuant to the answer of 24 March 2014, Official experts on Serious Case Reviews has met the chair of Report, columns 83-84W, on the School Information the Association of Independent Local Safeguarding (England) (Amendment) Regulations 2012, if he will Children Board Chairs, twice, most recently on 10 March make an assessment of the level of compliance with 2014. those regulations among state-funded schools and academies. [193749] Tim Loughton: To ask the Secretary of State for Education to whom the National Panel on Serious Mr Laws: If a parent, or other party, believes that a Case Reviews is accountable; and what the terms of school is not complying with the requirements, they are reference of that Panel are. [194100] entitled to raise this with the governing body. If their complaint is not resolved and they believe that the Mr Timpson: The members of national panel of school has failed to discharge its duty or acted unreasonably, independent experts on Serious Case Reviews (SCR) they can raise their complaint with the Secretary of were appointed by the Secretary of State for Education State. and are ultimately accountable to him, though they Ofsted routinely checks school websites ahead of operate independently. inspection. The role of the panel is set out in ’Working Together to Safeguard Children (2013)’ as follows: Schools: Musical Instruments ″The role of the panel will be to support Local Safeguarding Children Boards (LSCB) in ensuring that appropriate action is taken to learn from serious incidents in all cases where the Ms Harman: To ask the Secretary of State for statutory criteria are met and to ensure that those lessons are Education (1) what proportion of all primary school shared through publication of final SCR reports. The panel will age children in England were learning a musical also report to the Government their views of how the SCR system instrument in (a) academies, (b) community schools, is working″. (c) free schools, (d) primary schools and (e) other The panel’s remit will include advising LSCBs about: schools in each of the last five years; [194088] 631W Written Answers1 APRIL 2014 Written Answers 632W

(2) what proportion of all secondary school age Special Educational Needs children in England were learning a musical instrument in (a) academies, (b) community schools, (c) free Steve McCabe: To ask the Secretary of State for schools, (d) primary schools and (e) other schools in Education pursuant to the answer of 12 March 2014, each of the last five years; [194089] Official Report, columns 250-51W,on special educational (3) what the three most popular instruments are for needs, when he expects to make an announcement on primary school children in England who are learning the effect of reforms on funding for special educational an instrument in school; [194090] needs. [193842] (4) what the three most popular instruments are for Mr Laws: On 13 March, I announced proposals to secondary school children in England who are learning allocate £350 million to our least fairly funded local an instrument in school; [194091] areas in 2015-16. This is the biggest step towards fairer (5) what proportion of primary school children in schools funding in a decade, and it puts us in a much England learning an instrument in school (a) paid a better position to implement a national funding formula charge and (b) received their tuition free of charge in when the time is right. each of the last five years. [194092] To allocate this £350 million as fairly as possible, we selected the characteristics we think contribute most to Elizabeth Truss: The information requested is not the attainment of pupils and viability of schools, and held by the Department for Education. A recent report1 set indicative minimum funding levels for each of these. published by Arts Council England shows that in the These characteristics include deprivation and low prior academic year 2012/13, 437,975 pupils in years 1-9 attainment, both of which show some correlation with received free whole class ensemble teaching. This is low-cost, high incidence special educational needs (SEN). 8.6% of the national cohort. 430,998 pupils were in We looked at the average value attached by local authorities years 1-6 (12.4% of the cohort) and 6,977 were in to these characteristics and used these as a basis for our years 7-9 (0.4% of the cohort). proposed minimum funding levels. Applying these minimum funding levels could mean that some of the least fairly Many other children learn instruments in and out of funded local authorities with high numbers of these school, but these figures are not collected or held centrally. pupils see a benefit. 1 Available at: This additional £350 million applies to the schools http://www.artscouncil.org.uk/funding/apply-funding/funding- block of the dedicated schools grant that local authorities programmes/music-education-hubs/ receive. However, this is one of three notional blocks of funding, and local authorities are free to move money Science: Teaching Methods between their schools block, high needs block and early years block as they see fit. It is therefore possible that local authorities could choose to move the additional Neil Carmichael: To ask the Secretary of State for money to their high needs block to support children Education what conclusions he has drawn from the 3D with high-cost special educational needs. Printer Project Report for enriching teaching across STEM and Design subjects in schools. [193768] Our proposals are still at the consultation stage. For more information, please see the consultation at the following address: Elizabeth Truss: The schools involved in the 2012-13 pilot 3D Printer Project explored innovative ways of https://www.gov.uk/government/consultations/fairer-schools- teaching STEM subjects, stimulating pupil interest and funding-2015-to-2016 enriching the curriculum. Participating schools explored Trade Unions the potential benefits and challenges of using this technology in the curriculum and some shared their experiences Jonathan Ashworth: To ask the Secretary of State for with other schools wishing to introduce 3D printers. Education whether his Department is (a) undertaking As set out in the report, feedback confirmed that 3D or (b) plans to undertake a review of the check-off printers have significant potential as a teaching resource union subscription provision. [194037] and can have a positive impact on pupil engagement and learning. Elizabeth Truss: The Department for Education is In October the Secretary of State for Education, my currently undertaking a review of the check-off union right hon. Friend the Member for Surrey Heath (Michael subscription provision. Gove), commissioned a further 3D Printer Project, working with the Design and Technology Association UN Convention on the Rights of the Child and 42 teaching school alliances, to further develop our understanding of the educational opportunities offered Steve McCabe: To ask the Secretary of State for by 3D printers. Like the pilot project, it is exploring new Education what systems his Department has in place to ways of teaching STEM subjects using a 3D printer, but monitor the implementation of the Government’s with an emphasis on using it in ways that enhance commitment to give due consideration to the UN learning over other approaches. The schools involved convention on the rights of the child when making new will develop and deliver continuous professional policy and legislation; and if he will make a statement. development (CPD) on using a 3D printer to teach [194240] STEM subjects to teachers across their teaching school alliances. We plan to make the best of the STEM Mr Timpson: The Department for Education co- teaching and CPD resources developed by the participants ordinates the UK’s submission to the UN Committee available to schools across England. on the Rights of the Child (UNCRC), on behalf of 633W Written Answers1 APRIL 2014 Written Answers 634W other Government Departments and the devolved Working Hours Administrations, for the committee’s five-year review of implementation of the UNCRC in the UK. This report Lucy Powell: To ask the Secretary of State for will be submitted shortly and will include examples of Education what proportion of employees in his action taken to ensure that new policies and legislation Department of each (a) Civil Service pay grade and which impact on children are compliant with the UNCRC. (b) gender work (i) reduced hours, (ii) flexi-time, (iii) from home, (iv) a compressed working week, (v) job share, The Department has undertaken child’s rights impact (vi) term-time only and (vii) part-time. [193961] assessments for the key policy and legislative changes in recent years, notably in respect of the Education Act Elizabeth Truss: The Department for Education 2011 and the Children and Families Act 2014. We also recognises the key role played by flexible working patterns ensure that children’s rights issues are considered as in recruiting and retaining a diverse workforce. Managers part of the Home Affairs Committee clearance process. are required to ensure staff can achieve a good work-life balance and that business objectives are delivered through a positive approach to flexible working patterns. Working University Technical Colleges patterns are reviewed regularly to ensure that any arrangements meet business needs, The working patterns that are supported within the Department are: Nic Dakin: To ask the Secretary of State for (a) Compressed hours working (a) (b) (c) (d) Education how many 14, 15, 16, 17 (b) Flexitime working and (e) 18 year olds enrolled at each university technical (c) Home working college in 2013-14. [194108] (d) Job sharing (e) Partial retirement Mr Timpson: I refer the hon. Member to the answer (f) Part-time working (also referred to as reduced hours working) given on 18 November 2013, Official Report, column (g) Part-year working (also includes term-time working) 750W, for the number of pupils enrolled in university Working patterns (a) to (e) are agreed locally with technical colleges in autumn 2013. line managers and, therefore, records are not held centrally. Breakdowns by age will be published in the Statistical The following table provides information on the pay First Release, ’Schools, pupils and their characteristics: grade and gender of employees working full-time, part-time, January 2014’, in June 2014. full-time part-year and part-time part-year:

Department for Education (DFE) headcount by grade, gender and working pattern Percentage Headcount Full-time Part-time Full-time Part-year Part-time Part-year

DFE 3,480 86.2 13.3 0.1 0.4 EA AA SG Band 2 22 100.0 0.0 0.0 0.0 EA AO 146 74.7 24.0 0.7 0.7 EO 630 85.2 13.3 0.3 1.1 HEO 665 85.9 13.7 0.2 0.3 SEO 762 87.9 12.1 0.0 0.0 GRADE 7 753 86.2 13.5 0.0 0.3 GRADE 6 367 87.5 12.5 0.0 0.0 SCS Band 1 99 87.9 11.1 0.0 1.0 SCS Band 1A 3 100.0 0.0 0.0 0.0 SCS Band 2 28 89.3 10.7 0.0 0.0 SCS Band 3 4 100.0 0.0 0.0 0.0 SCS 1 100.0 0.0 0.0 0.0 Female 2,024 78.1 21.1 0.2 0.6 Male 1,456 97.4 2.5 0.0 0.1 Source: DFE, M1 as at 28 February 2014

JUSTICE sentence for all defendants so the only way we could answer the question would be to manually check each Criminal Proceedings case file which would incur disproportionate costs. Bill Esterson: To ask the Secretary of State for Justice what the average length of time between judgement The Crown court database does and the following and sentencing in criminal trials in England was in the table shows the average length between the latest conviction latest period for which figures are available; and what date in a trial and the date of sentence. The trend has assessment he has made of the trends in the time taken. seen the time between conviction and sentence falling [192266] from an average of 35.8 calendar days in 2007-08 to 24.6 calendar days in the first half of 2013-14. When a Mr Vara: HMCTS can only answer this question for trial has more than one offence, the jury may not reach trials in the Crown court. The case management database verdicts against all on the same day, and the sentence for magistrates courts does not hold the date of conviction cannot take place until all offences have a verdict. in a way we can calculate the time from conviction to 635W Written Answers1 APRIL 2014 Written Answers 636W

Average length between conviction and sentence in Crown Damian Green: Information on the number of forced court centres in England for defendants sentenced between April and marriage protection orders that have been granted in September 2013 England and Wales with a power of arrest attached, for Period Average calendar days each year since such orders came into force, are available April to September 2013 24.6 in table 2.8 of the Court Statistics Quarterly bulletin. 2012-13 28.2 The latest edition of this publication is available at the 2011-12 28.2 following link: 2010-11 30.2 https://www.gov.uk/government/publications/court-statistics- 2009-10 32.8 quarterly-october-to-december-2013 2008-09 34.4 2007-08 35.8 Legal Profession: Industrial Disputes Notes: 1. The average number of calendar days between the latest jury conviction date and the earliest substantial sentence date. Philip Davies: To ask the Secretary of State for 2. Includes cases where the defendant changes their plea to guilty Justice what estimate he has made of the cost to the during the trial. public purse of the action by barristers on (a) 6 3. This is internal management information run specifically to answer January 2014 and (b) 7 March 2014; and what his this question. The judiciary are able to sentence following conviction policy is on imposing a costs sanction on the barristers without the need for additional hearings as a result of initiatives [191468] currently in place. The judicially lead early guilty plea scheme aims to involved. have guilty plea cases concluded at a single hearing. Similarly, the probation service are able to provide reports on the day of conviction Mr Vara: We have not yet made an estimate of the to facilitate the sentencing of the defendant. cost to the taxpayer of the action by barristers on 6 January and 7 March 2014. The question of costs is a EU Justice and Home Affairs matter for judges to consider in individual cases under Mr Raab: To ask the Secretary of State for Justice the provisions set out in the Prosecution of Offences with which countries the EU as a legal personality (1) is Act 1985 (as amended). currently negotiating co-operation agreements in the field of justice and home affairs; [193454] Offences Against Children (2) has concluded co-operation agreements in the field of justice and home affairs. [193455] Diana Johnson: To ask the Secretary of State for Mr Vara: I refer to the response provided by the Justice how many people have been convicted of an Minister for Europe, my right hon. Friend the Member offence contrary to section (a) 1, where the victim was for Aylesbury (Mr Lidington), on 24 March 2014, Official a child, and (b) 5 of the Sexual Offences Act 1956 in Report, column 70W.In addition, JHA agreements have each of the last four years. [193577] been concluded between the EU and Brazil, Ukraine and Moldova during the course of this Government, Damian Green: Our laws in these areas are robust and which build on the borders and immigration aspects of clear. The Government takes very seriously all matters the Schengen system, in which the UK does not participate. relating to the sexual abuse of children. Those who commit sexual offences are more likely to go to prison Fines now than in 2010. Sadiq Khan: To ask the Secretary of State for Justice, The number of defendants convicted of offences what the total amount of fines levied on but under section 1 of the Sexual Offences Act 2003 where uncollected from people found guilty of non-payment the victim was a child under 16, together with all of (a) a television licence, (b) vehicle excise duty and offences under sections 2, 5, 6 and 7 of the Sexual (c) council tax was on 1 March 2014. [194111] Offences Act 2003 can be viewed in the table. As the Mr Vara: It is not possible to identify from Her Sexual Offences Act 2003 replaced the Sexual Offences Majesty’s Courts and Tribunals systems the vale of Act 1956 for these offences all proceedings reflect that fines that remain outstanding for specific offences. This Act too, as per the footnote. information could be provided only at disproportionate Statistics in respect of victims of offences under cost as identifying this would require a manual search section 2 of the Sexual Offences Act 2003—cannot be of all fine accounts. broken down by age. Forced Marriage Also, my department’s Court Proceedings Database holds information on criminal justice statistics only in Helen Jones: To ask the Secretary of State for Justice England and Wales. Criminal Justice Statistics in Northern how many forced marriage protection orders have been Ireland are a matter for the Department of Justice in granted with a power of arrest attached in each year Northern Ireland. Likewise, Criminal Justice Statistics since such orders came into force. [193701] in Scotland are a matter for the Scottish Government.

Offenders found guilty of offences under the Sexual Offences Act2003, England and Wales, 2008-121,2 20083 2009 2010 2011 2012

Section 14 294 332 326 372 340 Section 25 128 141 168 186 186 Section 56 179 180 224 270 247 Section 67 88 89 118 115 111 637W Written Answers1 APRIL 2014 Written Answers 638W

Offenders found guilty of offences under the Sexual Offences Act2003, England and Wales, 2008-121,2 20083 2009 2010 2011 2012

Section 78 355 321 350 376 320 1 The figures given in the table relate to persons for whom these offences were the principal offences for which they were dealt with. When a defendant has been found guilty of two or more offences it is the offence for which the heaviest penalty is imposed. Where the same disposal is imposed for two or more offences, the offence selected is the offence for which the statutory maximum penalty is the most severe. 2 Every effort is made to ensure that the figures presented are accurate and complete. However, it is important to note that these data have been extracted from large administrative data systems generated by the courts and police forces. As a consequence, care should be taken to ensure data collection processes and their inevitable limitations are taken into account when those data are used. 3 Excludes data for Cardiff magistrates court for April, July and August 2008. 4 Section 1 of the Sexual Offences Act 2003 includes rape of a male or female child aged under 16 and attempted rape of male or female child under 16. 5 Section 2 of the Sexual Offences Act 2003 describes offences of assault by penetration, but does not separately identify the age of the victim 6 Section 5 of the Sexual Offences Act 2003 describes offences of rape and attempted rape of children under 13 by a male. 7 S6 of the Sexual Offences Act 2003 describes offences of assault of children under 13 by penetration. 8 S7 of the Sexual Offences Act 2003 describes offences of sexual assault of children under 13. Note: Section 1 and 5 data also includes those proceedings and outcomes under the Sexual Offences Act 1956 Source: Justice Statistics Analytical Services—Ministry of Justice.

Diana Johnson: To ask the Secretary of State for offences under sections 2, 5, 6 and 7 of the Sexual Justice how many people have been convicted of an Offences Act 2003 can be viewed in the table. As the offence contrary to sections (a) 1 and 2 where the Sexual Offences Act 2003 replaced the Sexual Offences victim was a child, and (b) 5, 6 and 7 of the Sexual Act 1956 for these offences all proceedings reflect that Offences Act 2003 in each of the last four years. [193582] Act too, as per the footnote. Statistics in respect of victims of offences under Damian Green: Our laws in these areas are robust and section 2 of the Sexual Offences Act 2003 cannot be clear. The Government takes very seriously all matters broken down by age. relating to the sexual abuse of children. Those who Also, my Department’s Court Proceedings Database commit sexual offences are more likely to go to prison holds information on criminal justice statistics only in now than in 2010. England and Wales. Criminal Justice Statistics in Northern The number of defendants convicted of offences Ireland are a matter for the Department of Justice in under section 1 of the Sexual Offences Act 2003 where Northern Ireland. Likewise, Criminal Justice Statistics the victim was a child under 16, together with all in Scotland are a matter for the Scottish Government.

Offenders found guilty of offences under the Sexual Offences Act 2003, England and Wales, 2008-121, 2 20083 2009 2010 2011 2012

Section 14 294 332 326 372 340 Section 25 128 141 168 186 186 Section 56 179 180 224 270 247 Section 67 88 89 118 115 111 Section 78 355 321 350 376 320 1 The figures given in the table relate to persons for whom these offences were the principal offences for which they were dealt with. When a defendant has been found guilty of two or more offences it is the offence for which the heaviest penalty is imposed. Where the same disposal is imposed for two or more offences, the offence selected is the offence for which the statutory maximum penalty is the most severe. 2 Every effort is made to ensure that the figures presented are accurate and complete. However, it is important to note that these data have been extracted from large administrative data systems generated by the courts and police forces. As a consequence, care should be taken to ensure data collection processes and their inevitable limitations are taken into account when those data are used. 3 Excludes data for Cardiff magistrates court for April, July and August 2008. 4 Section 1 of the Sexual Offences Act 2003 includes rape of a male or female child aged under 16 and attempted rape of male or female child under 16 5 Section 2 of the Sexual Offences Act 2003 describes offences of assault by penetration, but does not separately identify the age of the victim 6 Section 5 of the Sexual Offences Act 2003 describes offences of rape and attempted rape of children under 13 by a male 7 S6 of the Sexual Offences Act 2003 describes offences of assault of children under 13 by penetration 8 S7 of the Sexual Offences Act 2003 describes offences of sexual assault of children under 13. Note: Section 1 and 5 data also includes those proceedings and outcomes under the Sexual Offences Act 1956. Source: Justice Statistics Analytical Services-Ministry of Justice.

Offences Against Children: Northern Ireland Damian Green: Our laws in these areas are robust and clear. The Government takes very seriously all matters relating to the sexual abuse of children. Those who Diana Johnson: To ask the Secretary of State for commit sexual offences are more likely to go to prison Justice how many people have been convicted of an now than in 2010. offence contrary to articles (a) 5 and 6, where the victim was a child, and (b) 12, 13 and 14 of the Sexual The number of defendants convicted of offences Offences (Northern Ireland) Order 2008 in each of the under section 1 of the Sexual Offences Act 2003 where last four years. [193578] the victim was a child under 16, together with all 639W Written Answers1 APRIL 2014 Written Answers 640W offences under sections 2, 5, 6 and 7 of the Sexual Also, my Department’s Court Proceedings Database Offences Act 2003 can be viewed in the table. As the holds information on criminal justice statistics only in Sexual Offences Act 2003 replaced the Sexual Offences England and Wales. Criminal justice statistics in Northern Act 1956 for these offences all proceedings reflect that Ireland are a matter for the Department of Justice in Act too, as per the footnote. Northern Ireland. Likewise, criminal justice statistics in Statistics in respect of victims of offences under Scotland are a matter for the Scottish Government. section 2 of the Sexual Offences Act 2003 cannot be broken down by age.

Offenders found guilty of offences under the Sexual Offences Act 2003, England and Wales, 2008-121, 2 Number 20083 2009 2010 2011 2012

Section 14 294 332 326 372 340 Section 25 128 141 168 186 186 Section 56 179 180 224 270 247 Section 67 88 89 118 115 111 Section 78 355 321 350 376 320 1 The figures given in the table relate to persons for whom these offences were the principal offences for which they were dealt with. When a defendant has been found guilty of two or more offences it is the offence for which the heaviest penalty is imposed. Where the same disposal is imposed for two or more offences, the offence selected is the offence for which the statutory maximum penalty is the most severe. 2 Every effort is made to ensure that the figures presented are accurate and complete. However, it is important to note that these data have been extracted from large administrative data systems generated by the courts and police forces. As a consequence, care should be taken to ensure data collection processes and their inevitable limitations are taken into account when those data are used. 3 Excludes data for Cardiff magistrates court for April, July and August 2008. 4 Section 1 of the Sexual Offences Act 2003 includes rape of a male or female child aged under 16 and attempted rape of male or female child under 16. 5 Section 2 of the Sexual Offences Act 2003 describes offences of assault by penetration, but does not separately identify the age of the victim. 6 Section 5 of the Sexual Offences Act 2003 describes offences of rape and attempted rape of children under 13 by a male. 7 Section 6 of the Sexual Offences Act 2003 describes offences of assault of children under 13 by penetration. 8 Section 7 of the Sexual Offences Act 2003 describes offences of sexual assault of children under 13. Note: Section 1 and 5 data also includes those proceedings and outcomes under the Sexual Offences Act 1956. Source: Justice Statistics Analytical Services—Ministry of Justice.

Offences Against Children: Scotland the victim was a child under 16, together with all offences under sections 2, 5, 6 and 7 of the Sexual Diana Johnson: To ask the Secretary of State for Offences Act 2003 can be viewed in the table. As the Justice how many people have been convicted of an Sexual Offences Act 2003 replaced the Sexual Offences offence contrary to sections (a) 1 and 2, where the Act 1956 for these offences all proceedings reflect that victim was a child, and (b) 18, 19 and 20(1), (2)(a) and Act too, as per the footnote. (3) of the Sexual Offences (Scotland) Act 2009 in each Statistics in respect of victims of offences under of the last four years. [193579] section 2 of the Sexual Offences Act 2003 cannot be Damian Green: Our laws in these areas are robust and broken down by age. clear. The Government takes very seriously all matters Also, my department’s Court Proceedings Database relating to the sexual abuse of children. Those who holds information on criminal justice statistics only in commit sexual offences are more likely to go to prison England and Wales. Criminal Justice Statistics in Northern now than in 2010. Ireland are a matter for the Department of Justice in The number of defendants convicted of offences Northern Ireland. Likewise, Criminal Justice Statistics under section 1 of the Sexual Offences Act 2003 where in Scotland are a matter for the Scottish Government.

Offenders found guilty of offences under the Sexual Offences Act2003, England and Wales, 2008 to 20121,2 20083 2009 2010 2011 2012

Section 14 294 332 326 372 340 Section 25 128 141 168 186 186 Section 56 179 180 224 270 247 Section 67 88 89 118 115 111 Section 78 355 321 350 376 320 1 The figures given in the table relate to persons for whom these offences were the principal offences for which they were dealt with. When a defendant has been found guilty of two or more offences it is the offence for which the heaviest penalty is imposed. Where the same disposal is imposed for two or more offences, the offence selected is the offence for which the statutory maximum penalty is the most severe. 2 Every effort is made to ensure that the figures presented are accurate and complete. However, it is important to note that these data have been extracted from large administrative data systems generated by the courts and police forces. As a consequence, care should be taken to ensure data collection processes and their inevitable limitations are taken into account when those data are used. 3 Excludes data for Cardiff magistrates court for April, July and August 2008. 4 Section 1 of the Sexual Offences Act 2003 includes rape of a male or female child aged under 16 and attempted rape of male or female child under 16. 641W Written Answers1 APRIL 2014 Written Answers 642W

5 Section 2 of the Sexual Offences Act 2003 describes offences of assault by penetration, but does not separately identify the age of the victim 6 Section 5 of the Sexual Offences Act 2003 describes offences of rape and attempted rape of children under 13 by a male. 7 S6 of the Sexual Offences Act 2003 describes offences of assault of children under 13 by penetration. 8 S7 of the Sexual Offences Act 2003 describes offences of sexual assault of children under 13. Note: Section 1 and 5 data also includes those proceedings and outcomes under the Sexual Offences Act 1956 Source: Justice Statistics Analytical Services—Ministry of Justice.

Prisoners’ Release and Escapes details of absconds by category of prisoner. The category of prisoner at time of release in error is not recorded in Sadiq Khan: To ask the Secretary of State for Justice incident reports and live data shows details of the (1) how many of each category of prisoner released current security category only; it has therefore, only from prison in error since May 2010 are still at large; been possible to provide the category of those who are [190140] currently unlawfully at large (table 3). Prisoners held in (2) how many prisoners in each category of prisoner immigration removal centres are not subject to security who have absconded from prisons since May 2010 categorisation. Over 97% of prisoners who abscond are remain at large; [190263] re-captured and returned to custody. On re-capture the (3) how many escapes by prisoners there have been prisoner will be returned to a closed prison and referred while being transported, by category of prisoner, in to the police for consideration for prosecution for having each month since May 2010; [190287] been unlawfully at large. (4) how many absconds from prison there have been, Table 2: Number of absconds between May 2010 by month and category of prisoner, since May 2010. and March 2013, by month [190288] Number of absconds

Jeremy Wright: Releases in error are taken very seriously May 2010 23 and action has been taken to tighten processes and June 2010 21 focus managers’ attention in this area. Releases in error July 2010 17 are infrequent and all incidents are subject to investigation. August 2010 25 The majority of prisoners released in error are returned September 2010 28 to custody quickly. In the 12 months to September 2013 October 2010 17 there were 46 releases in error from prison, which equated to 0.06% of all discharges from prison. This November 2010 15 compares to 68 in 2009-10. December 2010 23 January 2011 11 The following table shows the number of prisoners who have not subsequently returned to custody following February 2011 15 a release in error from prison between May 2010 and March 2011 14 September 2013 and broken down by the security category April 2011 8 recorded on the National Offender Management May 2011 12 Information System. This information is accurate as of June 2011 16 4 March 2014. July 2011 13 August 2011 17 Table 1: Number of prisoners not subsequently returned to custody following release in error from prison between May 2010 and September 2011 16 September 2013, by category October 2011 19 Category Number November 2011 16 December 2011 17 Category C 13 January 2012 9 Female (Closed) 3 February 2012 12 Uncategorised 8 March 2012 20 It is important to note that not all prisoners released April 2012 21 in error will be unlawfully at large and subject to recall. May 2012 15 For example, they may be unconvicted prisoners released June 2012 17 in error whose cases have been concluded since their July 2012 20 release without a custodial sentence. August 2012 23 These figures have been drawn from live administrative September 2012 15 data systems which may be amended at any time. Although October 2012 15 care is taken when processing and analysing the returns, November 2012 12 the detail collected is subject to the inaccuracies inherent December 2012 20 in any large scale recording system. January 2013 15 The number of releases in error may change should further incidents be reported. February 2013 16 The number of absconds has come down sharply March 2013 15 from a level of 947 in 2002-03 to 204 in 2012-13. Table 3: Number of prisoners unlawfully at large following abscond Table 2 provides a breakdown of the number of between May 2010 and March 2013, by category absconds, by month between May 2010 and March Category Number 2013. Table 3 shows the number of absconders still D16 unlawfully at large, by category, having absconded between Not categorised 2 May 2010 and March 2013. It is not possible to provide 643W Written Answers1 APRIL 2014 Written Answers 644W

These figures have been drawn from live administrative Probation: Islington data systems which may be amended at any time. Although care is taken when processing and analysing the returns, the detail collected is subject to the inaccuracies inherent Sarah Champion: To ask the Secretary of State for in any large scale recording system. Justice what assessment he has made of the effect of the Integrated Offender Management model piloted in Escapes from transit include escapes from Prison the London borough of Islington on reoffending rates Service and Contractor Escorts. The majority of escorts in that area. [186075] take place without incident and escapes whilst in transit are rare; there have been 10 since May 2010. This should be seen in relation to the 871,802 prisoners Damian Green: I have been asked to reply on behalf handled by the escort service in 2012-13 alone. of the Home Office. Table 4 shows the number of escapes in transit, in Integrated Offender Management is an important each month between May 2010 and March 2013. All approach to cutting crime and reoffending in local these prisoners have subsequently been recaptured. areas. One of the key strengths of the approach is that the local model should be responsive to local needs and Table 4: Month and category of prisoners who escaped in transit priorities as identified by the agencies and the partners between May 2010 and March 2013 in the area. For this reason, we have not imposed any Category particular model of Integrated Offender Management May 2010 Uncategorised on areas, nor do we performance manage from Whitehall May 2011 Cat B the crime and reoffending outcomes that local partners July 2011 Uncategorised in areas such as the London borough of Islington may July 2011 Uncategorised be achieving through their local approach. August 2011 Uncategorised December 2011 Uncategorised RSPCA January 2012 Uncategorised January 2012 Potential Category A Karl McCartney: To ask the Secretary of State for October 2012 Uncategorised Justice if he will place in the Library a copy of the November 2012 Uncategorised evidence submitted by his Department to the independent The number of both escapes and absconds have review of the RSCPA’s prosecutions activity being carried reduced significantly in recent years. Figures for the out by Mr Stephen Wooler. [193042] number of escapes and absconds since 1995 are provided in the Prison Digest contained in the Prison and Probation Damian Green: The Ministry of Justice has not submitted Trusts Performance Statistics. This can be found at evidence to Mr Stephen Wooler’s independent review of https://www.gov.uk/government/uploads/system/uploads/ private prosecutions by the Royal Society for the Prevention attachment_data/file/225234/prison-performance-digest-12- of Cruelty to Animals, nor have we received a request to 13.xls do so. 3MC Ministerial Corrections1 APRIL 2014 Ministerial Corrections 4MC

Number of European arrest warrants received by the serious Organised Ministerial Corrections Crime Agency, broken down by issuing state Country Number

Tuesday 1 April 2014 Austria 86 Belgium 363 Bulgaria 70 Cyprus 11 HOME DEPARTMENT Czech Republic 216 Denmark 11 Arrest Warrants Estonia 4 Finland 24 Mr Raab: To ask the Secretary of State for the Home France 323 Department how many requests for the surrender of Germany 748 an individual under a European Arrest Warrant were Gibraltar 4 received by the Serious Organised Crime Agency in Greece 43 2010-11. [79002] Hungary 195 [Official Report, 1 December 2011, Vol. 536, c. 1063W.] Ireland 46 Letter of correction from Damian Green: Italy 234 An error has been identified in the written answer Latvia 96 given to the hon. Member for Esher and Walton (Mr Raab) Lithuania 242 on 1 December 2011. Luxembourg 10 The full answer given was as follows: Malta 10 Netherlands 345 Damian Green [holding answer 7 November 2011]: In Poland 1536 2010-11, SOCA received 6,032 Part 1 European Arrest Portugal 62 Warrant requests (relating to individuals who are in the Romania 584 UK) and 256 Part 3 warrants (relating to individuals Slovakia 124 wanted by the UK). Slovenia 24 Member states will often issue an EAW to all other Spain 323 member states when the location of the individual Sweden 98 sought is not known. The number of requests received, Total 5,832 therefore, is not necessarily an indicator of those individuals being in the UK. The correct answer should have been: The correct answer should have been: Damian Green [holding answer 18 June 2012]: During Damian Green [holding answer 7 November 2011]: In the business year 2011-12, the Serious Organised Crime 2010-11, SOCA received 5,770 Part 1 European Arrest Agency received 5,641 European arrest warrants issued Warrant requests (relating to individuals who are in the by EU member states—this figure includes four issued by UK) and 256 Part 3 warrants (relating to individuals Gibraltar. The following table breaks this figure down wanted by the UK). by issuing state. Member states will often issue an EAW to all other Number of European arrest warrants received by the serious Organised member states when the location of the individual Crime Agency, broken down by issuing state sought is not known. The number of requests received, Requests by requesting country Total therefore, is not necessarily an indicator of those individuals being in the UK. Austria 85 Belgium 358 Mr Raab: To ask the Secretary of State for the Home Bulgaria 67 Department how many requests for the surrender of Cyprus 10 an individual under a European arrest warrant were Czech Republic 203 received by the Serious and Organised Crime Agency in Denmark 11 2011-12. [112242] Estonia 4 [Official Report, 20 June 2012, Vol. 546, c. 1058-60W.] Finland 22 France 319 Letter of correction from Damian Green: Germany 737 An error has been identified in the written answer Gibraltar 3 given to the hon. Member for Esher and Walton (Mr Raab) Greece 42 on 20 June 2012. Hungary 195 The full answer given was as follows: Ireland 44 Italy 226 Damian Green [holding answer 18 June 2012]: During Latvia 86 the business year 2011-12, the Serious Organised Crime Lithuania 230 Agency received 5,832 European arrest warrants issued Luxembourg 10 by EU member states—this figure includes four issued by Malta 9 Gibraltar. The following table breaks this figure down Netherlands 340 by issuing state. 5MC Ministerial Corrections1 APRIL 2014 Ministerial Corrections 6MC

Number of European arrest warrants received by the serious Organised Number of European arrest warrants received by the serious Organised Crime Agency, broken down by issuing state Crime Agency, broken down by issuing state Requests by requesting country Total Requests by requesting country Total

Poland 1,455 Slovenia 24 Portugal 61 Spain 318 Romania 567 Sweden 96 Grand Total 5,641 Slovakia 119 ORAL ANSWERS

Tuesday 1 April 2014

Col. No. Col. No. HEALTH...... 703 HEALTH—continued A and E Waiting Times...... 711 NHS Reorganisation...... 705 Brain Tumours (Children)...... 711 NHS Staff (Redundancy and Re-employment) ...... 707 Children’s Diet ...... 718 Out-of-hospital Care...... 709 Community Pharmacies...... 708 Physical and Mental Health (Parity of Esteem) ..... 713 Compassionate Care ...... 703 Topical Questions ...... 718 Maternity Care ...... 716 WRITTEN STATEMENTS

Tuesday 1 April 2014

Col. No. Col. No. BUSINESS, INNOVATION AND SKILLS...... 73WS TRANSPORT ...... 77WS Intellectual Property Office...... 73WS Airspace Restrictions (Glasgow Commonwealth Games) ...... 77WS COMMUNITIES AND LOCAL GOVERNMENT.. 74WS HGV Road User Levy...... 78WS Business Rates...... 74WS

JUSTICE...... 75WS Civil Court System (Fees) ...... 75WS WORK AND PENSIONS ...... 79WS Parole Board Rules ...... 76WS Office for Nuclear Regulation ...... 79WS PETITION

Tuesday 1 April 2014

Col. No. Col. No. COMMUNITIES AND LOCAL GOVERNMENT.. 7P Fire Services in the Cleveland Fire Authority area (Middlesbrough South and East Cleveland)...... 7P WRITTEN ANSWERS

Tuesday 1 April 2014

Col. No. Col. No. ATTORNEY-GENERAL ...... 583W DEFENCE—continued Counterfeit Manufacturing: Money...... 583W Armed Forces Day: Northern Ireland...... 618W Female Genital Mutilation...... 583W Army: Disciplinary Proceedings...... 619W Prosecutions...... 584W Cyprus ...... 620W Serious Fraud Office ...... 584W DSG Ashchurch...... 621W Service Prosecuting Authority...... 584W Egypt ...... 621W Employment Tribunals Service...... 621W BUSINESS, INNOVATION AND SKILLS...... 587W Joint Strike Fighter Aircraft...... 622W Barclays ...... 587W Military Police ...... 622W NATO...... 623W CABINET OFFICE...... 549W Reserve Forces: Brigg...... 623W Electoral Register...... 549W Strategic Defence and Security Review ...... 624W Employment: Brigg...... 549W Older People ...... 549W DEPUTY PRIME MINISTER ...... 553W Rents: Greater London ...... 550W Constituencies...... 553W Devolution and Decentralisation ...... 554W COMMUNITIES AND LOCAL GOVERNMENT.. 553W Electoral Register...... 554W Housing: Carbon Emissions...... 553W Electoral Register: Fraud ...... 555W Land: Contamination ...... 553W Electoral Register: Northern Ireland...... 555W Electoral Register: Young People ...... 556W CULTURE, MEDIA AND SPORT ...... 586W Broadband: South West ...... 586W EDUCATION...... 627W Academies...... 627W DEFENCE...... 617W Adoption: Yorkshire and the Humber...... 628W Afghanistan ...... 617W Children: Day Care ...... 628W Col. No. Col. No. EDUCATION—continued HEALTH—continued Children: Protection...... 629W Public Health England...... 582W Education: Employment ...... 630W Skin Cancer ...... 583W School Information (England) (Amendment) Regulations 2012...... 630W HOME DEPARTMENT...... 613W Schools: Musical Instruments ...... 630W Alcoholic Drinks...... 613W Science: Teaching Methods ...... 631W Antisocial Behaviour Orders ...... 613W Special Educational Needs...... 632W Crime: Greater Manchester...... 613W Trade Unions ...... 632W Driving: Licensing...... 613W UN Convention on the Rights of the Child ...... 632W Drugs: Misuse...... 614W University Technical Colleges ...... 633W EU Justice and Home Affairs...... 614W Working Hours ...... 634W Forced Marriage ...... 614W Human Trafficking: Repatriation...... 615W ELECTORAL COMMISSION COMMITTEE ...... 608W Immigration...... 615W Electoral Register: Dudley ...... 608W Proceeds of Crime...... 615W Electoral Register: South Wales ...... 609W Riot Control Weapons: Greater London...... 616W Electoral Register: West Midlands ...... 610W Theft: Sheep...... 616W Working Hours ...... 616W ENERGY AND CLIMATE CHANGE ...... 585W Argentina...... 585W INTERNATIONAL DEVELOPMENT...... 611W Energy: Prices ...... 585W Africa...... 611W Nuclear Power: Security...... 585W All Party Groups...... 611W Plutonium ...... 585W Developing Countries: Water ...... 612W Trade Unions ...... 586W Development Aid...... 612W Tax Havens ...... 612W ENVIRONMENT, FOOD AND RURAL AFFAIRS...... 597W JUSTICE...... 633W All Party Groups...... 597W Criminal Proceedings ...... 633W Birds: Falkland Islands ...... 597W EU Justice and Home Affairs...... 635W Bovine Tuberculosis: Republic of Ireland ...... 597W Fines ...... 635W Flood Control...... 598W Forced Marriage ...... 635W Floods: EU Grants and Loans...... 598W Legal Profession: Industrial Disputes...... 636W Floods: Somerset ...... 598W Offences Against Children ...... 636W Hunting Act 2004...... 598W Offences Against Children: Northern Ireland ...... 637W Land Drainage...... 599W Offences Against Children: Scotland...... 639W Nature Conservation: Crime ...... 599W Prisoners’ Release and Escapes ...... 641W Slaughterhouses ...... 600W Probation: Islington ...... 644W RSPCA ...... 644W FOREIGN AND COMMONWEALTH OFFICE..... 600W Argentina...... 600W NORTHERN IRELAND ...... 587W Commonwealth ...... 601W All Party Groups...... 587W Gibraltar: Spain ...... 601W Working Hours ...... 587W Nuclear Security Summit ...... 601W Venezuela...... 602W Working Hours ...... 602W SCOTLAND...... 586W All Party Groups...... 586W HEALTH...... 556W Abortion ...... 557W TRANSPORT ...... 588W Air Pollution: Death ...... 558W Cycleways ...... 588W All Party Groups...... 558W Driver and Vehicle Agency...... 588W Ambulance Services ...... 558W High Speed 2 Railway Line ...... 588W Cancer ...... 561W Northern Rail ...... 588W Colorectal Cancer ...... 562W Railway Stations ...... 589W Food: EU Action ...... 569W Railway Stations: Kent...... 589W General Practitioners ...... 569W Railways: Tickets ...... 589W General Practitioners: Rural Areas ...... 556W Rescue Services ...... 589W Health: Screening...... 570W Road Traffic...... 590W Hospitals: Industrial Health and Safety ...... 570W Roads: Repairs and Maintenance...... 590W Infant Mortality...... 571W Southeastern ...... 591W Livestock: Diseases ...... 571W Trade Unions ...... 592W Maternity Services: Immigrants ...... 575W Working Hours ...... 592W Medical Equipment ...... 576W Mental Health Services ...... 576W TREASURY ...... 624W Mid Staffordshire NHS Foundation Trust ...... 577W Air Passenger Duty ...... 624W Multiple Sclerosis...... 578W All Party Groups...... 624W NHS...... 556W Children: Day Care ...... 625W NHS: Pay...... 579W Coinage...... 625W NHS: Redundancy...... 579W Motor Vehicles: Excise Duties...... 625W NHS: Re-employment...... 580W Occupational Pensions...... 626W NHS: Working Hours ...... 556W Smuggling ...... 626W Parkinson’s Disease ...... 581W Working Hours ...... 627W Col. No. Col. No. WORK AND PENSIONS ...... 603W WORK AND PENSIONS—continued All Party Groups...... 603W Pensions...... 606W Atos Healthcare ...... 603W Pensions Advisory Service...... 606W Employment and Support Allowance ...... 603W Social Fund...... 607W Housing Benefit: Social Rented Housing ...... 604W Unemployed People: Cancer ...... 607W Incapacity Benefit ...... 605W Work Capability Assessment...... 607W Jobcentre Plus ...... 605W MINISTERIAL CORRECTIONS

Tuesday 1 April 2014

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CONTENTS

Tuesday 1 April 2014

Oral Answers to Questions [Col. 703] [see index inside back page] Secretary of State for Health

Royal Mail [Col. 725] Answer to urgent question—(Vince Cable)

National Parks (Governance) [Col. 737] Bill presented, and read the First time

Regulation of Gambling Advertising [Col. 738] Motion for leave to bring in Bill—(Jake Berry)—agreed to Bill presented, and read the First time

Finance (No. 2) Bill [Col. 743] Motion for Second Reading—(Danny Alexander) Amendment—(Chris Leslie)—on a Division, negatived Motion, on a Division, agreed to Read a Second time Carry-over motion—(Mr Evennett)—on a Division, agreed to

Sir Robert Peel Hospital [Col. 857] Debate on motion for Adjournment

Westminster Hall North Wales Economy [Col. 177WH] Grassroots Football [Col. 202WH] UK Automotive Industry [Col. 209WH] Debates on motion for Adjournment

Written Statements [Col. 73WS]

Petition [Col. 7P] Observations

Written Answers to Questions [Col. 549W] [see index inside back page]

Ministerial Corrections [Col. 3MC]